Impact of Higher US Tariffs on Castor Oil
05-Sep-2025 05:25 PM
Impact of Higher US Tariffs on Castor Oil
★ The United States has imposed new tariffs on Indian imports, particularly castor oil. A 25% baseline duty will now apply on all shipments, with an additional 25% duty linked to Russian oil purchases, taking the total tariff up to 50%.
★ Shipments departing after August 28, 2025, will face a 50% duty.
★ Shipments departing after August 7 but arriving before September 17, 2025, will face a 25% duty.
★ Between April–July 2025, the US imported 24,000 metric tons of castor oil and derivatives, slightly lower than 25,000 MT in 2024.
★ So far, the 10% duty had little impact on demand, but with tariffs rising to 25–50% in Q4 2025, demand is expected to take a serious hit, as buyers may shift to substitutes due to higher costs.
★ The Indian castor oil industry is set to face significant pressure from these new US trade measures.