U.S. Expected To Impose Secondary Tariffs On India This Friday, Pending Formal Announcement

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President Trump has announced that the United States is preparing to impose secondary tariffs on India, expected to take effect this Friday, August 1, 2025, according to senior White House officials.

United States International Law

Overview

President Trump has announced that the United States is preparing to impose secondary tariffs on India, expected to take effect this Friday, August 1, 2025, according to senior White House officials. As of the date of this post, no Executive Order, Federal Register notice, or formal agency guidance has been released. We are closely monitoring for official documentation and will update this post if and when such materials are issued by the U.S. government.

Background of the Proposed Tariffs

President Trump has stated that Indian imports will be subject to a 25% tariff beginning August 1, 2025, with an additional "penalty" to be imposed in connection with India's trade and defense ties with Russia. Notably, the 25% rate is slightly lower than the 26% tariff he previously announced on "Liberation Day" earlier this year. Earlier this month, President Trump threatened to implement secondary tariffs of 100% starting in early August on countries that buy Russian oil and gas, unless a ceasefire deal between Russia and Ukraine was reached. However, the nature and scope of the rate and additional penalty have not been formally stated or clarified by the administration. While not formally labeled as "secondary sanctions," the structure and rationale of the measure resemble prior efforts to align countries with U.S. sanctions policy.

In his public remarks on Truth Social on July 30, 2025, President Trump criticized India's high tariffs and non-monetary trade barriers, noting that while the country is an ally, it has "the most strenuous and obnoxious non-monetary Trade Barriers of any Country." He also remarked on India's continued purchases of military equipment and energy from Russia as a key concern, particularly in light of the ongoing war in Ukraine. As highlighted in our previous post on June 9, 2025, there has been a recent bipartisan push for additional pressure and sanctions to be imposed on Russia.

Targeted Sectors

While the administration has described the tariffs as comprehensive, the specific list of affected goods has not yet been made public and no formal sectoral breakdown has been released. We note that there has been commentary in the context of tariffs on other countries that indicate that sectoral exemptions will be considered by the administration. Specifically, U.S. Commerce Secretary Howard Lutnick in an interview on July 29, 2025, remarked that "[i]f you grow something and we don't grow it, that can come in for zero, so if we do a deal with a country that grows mangos, pineapple, then they can come in without a tariff, because coffee and cocoa will be other examples of natural resources."¹ A recently published excerpt from the Agreement on Reciprocal Trade between the United States and Indonesia, released by the White House last week, also states that the United States "may also identify certain commodities that are not naturally available or domestically produced in the United States for a further reduction in the reciprocal tariff rate."²

Pending Specifics

Several key questions concerning the pending tariffs on India remain unanswered at this time, including the following:

The legal mechanism for implementation and whether the tariffs will be imposed through Executive Order, Commerce Department rulemaking, or another route.
Whether there will be exemptions for strategic sectors such as pharmaceuticals, semiconductors, or critical minerals.
The actual scope, duration, and enforcement timeline of the tariffs.

We are closely monitoring official U.S. government channels and will provide updates on these points as new information becomes available.

Business Considerations

While the Government of India has not issued a formal response, it has previously engaged in diplomatic discussions with the U.S. on trade matters. Given the depth of the U.S.-India economic relationship, the situation is being closely watched by companies and policymakers in both countries.

For companies with exposure to Indian supply chains or operations, this is a critical moment to monitor developments. While the situation continues to develop, businesses should closely assess potential impacts on their supply chains and prepare respective contingency plans in the event of potential trade disruptions arising from regulatory changes.

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