Summary: The United States has recently imposed an additional 25% ad valorem tariff on Indian imports, raising the total tariff to 50%. Positioned as a “penalty” for India’s continued trade in Russian oil, this measure marks a shift from purely reciprocal trade action to an instrument of foreign policy enforcement. In this article, we discuss the key features of the new order, its commercial and compliance implications for Indian exporters, and the steps businesses can take to manage legal and operational risks in light of these developments.