US President Donald Trump has announced that the United States will impose a 25 percent tariff, along with an additional penalty, on Indian imports beginning August 1. The decision was made public via Truth Social, Trump’s personal social media platform, and marks a significant escalation in trade tensions between the two countries.
Trump cited India’s high tariff regime and what he described as “strenuous and obnoxious non-monetary trade barriers” as the primary reasons for the move. He claimed that despite India being a friend, the US has conducted relatively little business with the country due to these barriers and a persistent trade deficit.
The penalty component of the tariffs is linked to India’s continued purchases of military equipment and energy from Russia. Trump criticized India’s longstanding reliance on Russian defence supplies and its position as one of the largest buyers of Russian energy, alongside China. He framed these actions as problematic in the context of the ongoing war in Ukraine, stating, “At a time when everyone wants Russia to stop the killing in Ukraine, these things are not good.”
In his post, Trump declared, “ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!”
The announcement follows months of trade negotiations between India and the US, which failed to yield a mini or interim trade deal. Last week, Finance Minister Nirmala Sitharaman had expressed optimism about the progress of talks, even as the tariff deadline loomed.
India recently signed a free trade agreement with the United Kingdom, which Commerce and Industry Minister Piyush Goyal described as a “game-changing” deal offering significant benefits to farmers, MSMEs, young professionals, and fishermen.
