Tariff Talk

Under the instructions issued in the August 6 Executive Order, “Addressing Threats to the United States by the Government of the Russian Federation,” a new 25% tariff on goods of Indian origin goes into effect tomorrow, August 27. In response, India has launched a tax overhaul, seeking to lower its GST from 28% to 18% to offset potential losses to the Indian economy resulting from U.S. tariffs.

Goods that were already on the water prior to August 27 and entered with CBP by September 17 are exempt from this new fee. Other exclusions include, similar to reciprocals, payment of 232s, donations, or informational materials. Items listed in “Annex II” of Executive Order 14257 are also excluded. The Annex II list has seen both additions and removals, with some changes leading to 232s on steel, aluminum, and copper articles that were previously excluded. Notably, there is no exclusion for U.S. content.

OCEANAIR will continue monitoring for any last-minute changes to the Indian/Russian oil tariff and remains alert to the evolving environment.