On August 6, 2025, President Trump published a new Executive Order imposing secondary tariffs on India in response to its continued importation of Russian-origin crude oil. This marks both an escalation in U.S. trade negotiations with India and the first major Russia-related enforcement action of his second term. It also reflects the Trump Administration’s novel use of trade measures to enforce U.S. sanctions policy.
Background
Since returning to office in January 2025, President Trump has taken a diplomatic approach to the conflict in Ukraine, encouraging a ceasefire between the Russian Federation and Ukraine. Under this approach, his Administration has refrained from imposing major new sanctions. However, on July 14, 2025, during a meeting at the White House with NATO Secretary-General Mark Rutte, the President announced a 50-day deadline for Russia to agree to a peace deal or face significant consequences, including secondary tariffs on countries continuing to trade with Russia. Two weeks later, on July 28, citing a lack of meaningful progress, the President shortened the timeline to 10 to 12 days.
Legislation to impose broader sanctions on Russia remains pending in Congress with strong bipartisan support. However, congressional leaders have indicated they will await further direction from the administration before moving the bill forward.
Meanwhile, after weeks of negotiations did not result in a trade deal framework, India was hit with a 25% reciprocal tariff under the President’s July 31 Executive Order, also taken pursuant to the International Economic Emergency Powers Act (IEEPA)—an increase from the 10% baseline tariff in place since April. In announcing this increase last month, President Trump warned that tariffs on India may increase further if India continued to purchase energy and military equipment from Russia.
Impact
The August 6 Executive Order builds on the national emergency first declared under the Biden Administration in Executive Order 14024 (April 15, 2021) and expanded by Executive Order 14066 (March 8, 2022), which prohibited the import of Russian-origin energy products, including crude oil and petroleum. As an initial matter, it is significant that the Trump Administration has formally continued the national emergency based on updated intelligence and interagency assessments regarding Russia’s continued aggression against Ukraine. Furthermore, the EO finds that India continues to directly or indirectly import Russian oil, and concludes that imposing additional tariffs on Indian-origin goods is necessary to strengthen the existing sanctions framework.
The Executive Order imposes an additional 25 percent ad valorem duty on goods imported from India, effective August 27, 2025. This new tariff follows a prior 25 percent duty effective August 7, 2025, bringing the total IEEPA tariff rate on covered Indian-origin goods to 50 percent.
An exception applies for goods that are loaded and in transit to the United States before that date. Under Section 2 of the Executive Order, the duty is in addition to all other applicable duties, fees, taxes, and charges, unless the goods are subject to existing or future measures under Section 232 of the Trade Expansion Act of 1962, or the expansive list of exclusions available under Annex II to the April 2, 2025 EO. (Pillsbury’s prior alerts provide additional guidance and can be found here.)
Scope
Section 5 of the Executive Order establishes a formal interagency process for monitoring countries that continue to import Russian oil, whether directly or indirectly. For these purposes:
- “Russian Federation oil” is defined as crude oil or petroleum products extracted, refined, or exported from the Russian Federation, regardless of the nationality of the entity involved in their production or sale.
- “Indirectly importing” includes purchasing Russian Federation oil through intermediaries or third countries, where the origin of the oil can reasonably be traced to Russia, as determined by the Secretary of Commerce in consultation with the Secretaries of State and Treasury.
The scope of this definition may be subject to further clarification or implementing guidance, as indirect sourcing routes, such as blended crude or refined products, will likely raise compliance challenges.
The Secretary of Commerce, in coordination with the Secretaries of State and Treasury, is responsible for determining whether a country meets the threshold for direct or indirect importation. If so, the State Department will recommend whether the President should impose an additional 25 percent ad valorem duty on imports from that country.
The structure of the Executive Order indicates that additional designations may follow soon. With the shortened deadline approaching, additional tariffs on countries continuing to purchase Russian oil are expected in the coming days. However, these measures may be tempered by a potential meeting between the President and President Putin next week. New sanctions may also be forthcoming as both the administration and Congress weigh broader responses to the continued conflict in Ukraine.