U.S. Tariffs on India Surge to 50% Following Oil Trade Findings

The latest U.S. trade action raises tariffs on imports from India to 50%, though exemptions for critical sectors like pharmaceuticals and electronics remain.

President Donald Trump has doubled tariffs on Indian imports, adding a second 25% levy just days after the first—bringing the total duty to 50% on one of America’s key trading partners. The move was triggered by the U.S. government’s finding that India is buying Russian oil, which it views as supporting a threat to U.S. national security and foreign policy.

“The actions and policies of the Government of the Russian Federation continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States,” Trump stated in an executive order issued Wednesday. “I find that the Government of India is currently directly or indirectly importing Russian Federation oil.”

The additional 25% ad valorem duty is set to take effect 21 days after the order’s signing. Shipments already in transit before the deadline and arriving by September 17, 2025, will be exempt.

While the tariff order applies broadly across sectors, it preserves exemptions outlined in the April 2, 2025 executive order, titled, “Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits.” These include pharmaceuticals—one of India’s most significant exports to the U.S.—as well as electronics and other critical imports. These sectors currently remain protected from the combined 50% tariff rate.

In a separate policy announcement on Tuesday, Trump revealed plans to impose sweeping new tariffs on pharmaceutical imports more broadly. He stated that the U.S. would “start with a small tariff on pharmaceuticals,” but that the rate would escalate sharply over time—to 150%, and eventually 250%—as part of a broader push to boost domestic drug manufacturing. Though unrelated to the India-specific tariffs, Trump’s separate proposal has heightened concerns among healthcare executives about the financial risks their health systems could face if pharmaceutical imports are ultimately subjected to significant new duties.

Any health system can set up a 30-minute SRS training session on how leading health systems assess their exposure to tariffs and other risks, and the steps they take to mitigate risks proactively. Simply email SRS Support (support@supplyrisk.com) to schedule a time.

The following SRS reports can be tailored to the items you buy to assess tariff exposure for your health system:

• “Product Tariffs – Special Report” – lists tariff rates for all countries and summarizes country of origin for items you buy (run it from the Prevent dashboard).
• “Products by Country (Tariff Risk)” – choose any country to see which items you buy are manufactured there (run it from the Prevent dashboard).
• “Products All Countries (Tariff Risk)” – downloads tariff rates on all items that you buy (run it from the Prevent dashboard).
• “Products Sites and Risks” – lists manufacturing location for all items you buy from the supplier (in the Prevent dashboard after you drill down on a supplier).

If you have not yet tailored SRS for the items you buy, it’s easy to do so with an SRS subscription.

For more information, see:

The White House, ADDRESSING THREATS TO THE UNITED STATES BY THE GOVERNMENT OF THE RUSSIAN FEDERATION, August 6

The White House, Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits, April 2

Reuters, VIEW Trump order imposes additional 25% tariff on goods from India, August 6

Supply Risk Solutions, U.S. Trade Tariffs to Begin August 7, With Pharma and Semiconductor Duties Expected Soon, August 6

Bloomberg, Trump Says Pharma, Chips Tariffs Coming in ‘Next Week or So’, August 5

Supply Risk Solutions, U.S. Strikes Wave of Trade Deals Ahead of Tariff Deadline, July 29

Supply Risk Solutions, Trump Expands Tariff Agenda with Japan Deal, EU Negotiations, and Import Duties Across Asia, July 23

Supply Risk Solutions, U.S. Gives Notice of Sweeping Tariff Hikes on August 1 Amid Stalled Trade Talks, July 14

Supply Risk Solutions, U.S. Gives Notice of Sweeping Tariff Hikes on August 1 Amid Stalled Trade Talks, July 7

Supply Risk Solutions, Trump Tariffs Temporarily Reinstated Amid Legal, Economic Uncertainty, June 3

Supply Risk Solutions, Court Strikes Down Trump’s IEEPA Tariffs Citing Legal Overreach, May 29

Supply Risk Solutions, U.S. Announces Major Trade Deals with UK and China, May 15

Supply Risk Solutions, Tariffs Deepen Pressure on U.S. Healthcare Supply Chains, May 7

Supply Risk Solutions, U.S. Tariffs Drives “Foreign Trade Zone” Surge, April 30

Supply Risk Solutions, U.S. Launches Tariff Probes Into Chip and Pharmaceutical Imports, April 17

Supply Risk Solutions, Supply Chains Upended by Historic Tariffs, April 3

Supply Risk Solutions, Manufacturers Plan to Pass Tariff Costs on to Their Customers, April 1

Supply Risk Solutions, Impact of Upcoming Tariffs on Healthcare Sourcing, March 11

Supply Risk Solutions, Trump’s Partial Tariff Exemptions Leave Majority of Canada-Mexico Duties in Place, March 7

Supply Risk Solutions, U.S. Tariffs on Canada and Mexico Take Effect, March 4

Supply Risk Solutions, U.S. Unveils New Tariff Plans, February 28

Supply Risk Solutions, Trump Confirms Canada and Mexico Tariffs Will Take Effect on March 4, February 25

Supply Risk Solutions, Trump Proposes 25% Tariffs on Cars, Chips, Pharma Products, February 20

Supply Risk Solutions, China Counters U.S. Tariffs with Targeted Tariffs, Export Controls, and Investigations, February 4

Supply Risk Solutions, Trump Delays Tariffs on Mexico and Canada, February 3

Supply Risk Solutions, U.S. to Impose Tariffs on Key Trading Partners Feb. 1, February 1

Supply Risk Solutions, Trump’s Tariff Policies Spark Global Uncertainty, January 27

Supply Risk Solutions, Trump Proposes 25% Tariffs on Canada and Mexico Starting February 1, January 21

Supply Risk Solutions, Tariff Planning Requires Product Transparency, January 13

Supply Risk Solutions, U.S. Tariff Plans Bring Urgency to Knowing Product Manufacturing Locations, December 2

Supply Risk Solutions, Tariffs Push Manufacturers to Rethink Supply Chain Strategies, November 15

Supply Risk Solutions, Tariffs Spur Urgency to Understand Product Manufacturing Locations, November 11

Supply Risk Solutions, List the Products You Buy That Are Subject to China Import Tariffs, October 28