New 25% Tariff on Indian-Origin Imports Starting August 27

New Tariff Guidance for Indian-Origin Goods – Effective August 27

On August 25, 2025, U.S. Customs and Border Protection (CBP) issued guidance via CSMS #66027027 regarding imports from India.  Effective August 27, 2025, under Executive Order (EO) 14329, goods originating from India and entered for consumption or withdrawn from warehouse will be subject to an additional 25% ad valorem duty under HTSUS 9903.01.84.  This is in addition to the 25% reciprocal tariff effective on August 7, 2025, and other applicable duties, taxes, and fees.

Exemptions Include:

• 9903.01.85 – Goods loaded onto the mother vessel prior to August 27 that are in transit on the final mode of transport to the U.S. and entered prior to September 17, 2025.
• 9903.01.86 – Items listed in Annex II of EO 14257.
• 9903.01.87 – Specific articles including iron, steel, aluminum, vehicles, and copper products.
• 9903.01.88 - Donations, such as food, clothing, and medicine.
• 9903.01.89 - Informational materials.

Chapter 98 Claims:  Properly claimed Chapter 98 goods are exempt from the additional 25% duty, though duties may apply to the value of repairs or processing performed in India. 

Foreign Trade Zone (FTZ) and Drawback: Articles of India must be admitted to FTZs under privileged foreign status.  Drawback is available for these tariffs.

HTS Filing: CBP has updated HTS sequencing to ensure accurate duty application.

Review the full notice for additional details.

Resources:

• CSMS # 66027027 - Guidance-Additional Duties on Imports from India
• Pre-Published Federal Register Notice 2025-16419.pdf
• Additional 25% Tariff on India for Use of Russian Oil | C.H. Robinson