US executive order sets 25% reciprocal tariff on Indian goods
On 31 July 2025, US President Donald Trump signed the executive order 'Further Modifying the Reciprocal Tariff Rates', which lists India at 25%, effective seven days later (7 August 2025).
Summary
US President Donald Trump signed the executive order 'Further Modifying the Reciprocal Tariff Rates' (Executive Order 14326) at the White House on 31 July 2025. Annex I of the order sets an adjusted reciprocal tariff of 25% for India. Other rates in the annex include Bangladesh 20%, Indonesia 19% and Japan 15%. The changes apply to goods entered for consumption on or after 12:01 a.m. eastern daylight time seven days after the order, that is 7 August 2025; goods already in transit before then and entered before 5 October 2025 stay at the earlier rate. Goods of trading partners not listed in Annex I face 10%.
Key facts
- Signed
- 31 July 2025, US President Donald Trump
- Order
- Executive Order 14326, 'Further Modifying the Reciprocal Tariff Rates'
- India
- 25% (Annex I)
- Others in Annex I
- Bangladesh 20%, Indonesia 19%, Japan 15%
- Effective
- 12:01 a.m. EDT, 7 August 2025
- In-transit window
- Entered before 5 October 2025 at old rate
- Unlisted partners
- 10%
Practice MCQs 3 questions
What reciprocal tariff rate did the US executive order of 31 July 2025 set for India?
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Correct answer: A — 25%
Annex I of Executive Order 14326 lists India at 25%.
From which date did the 25% US reciprocal tariff on Indian goods under the executive order of 31 July 2025 take effect?
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Correct answer: D — 7 August 2025
The order applies from 12:01 a.m. EDT seven days after 31 July 2025, i.e. 7 August 2025; Business Standard reported it took effect on 7 August.
Consider the following statements about Annex I of US Executive Order 14326 (31 July 2025): 1. Bangladesh is listed at 20%. 2. Japan is listed at 15%. Which of the statements given above is/are correct?
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Correct answer: C — Both 1 and 2
Both are correct as per Annex I of the order.