United States President Donald Trump has announced a 25 percent tariff on all Indian exports to America starting August 1, along with an unspecified penalty. The decision was shared in a short post by Trump on his platform Truth Social, where he criticised India’s trade practices and defence ties with Russia.
Calling India a “friend,” Trump said that the country maintains “far too high tariffs” and “the most strenuous and obnoxious non-monetary trade barriers” of any nation. He also pointed out that India continues to buy a large share of its military equipment and oil from Russia.
“India will, therefore, be paying a tariff of 25 percent, plus a penalty… starting August 1,” Trump stated, justifying the move by linking Indian purchases of Russian energy and arms to the ongoing war in Ukraine.
Trump also accused both India and China of indirectly supporting Russia’s military operations through trade, and reiterated that he could end the conflict “within 24 hours” if elected again in January.
This tariff decision follows earlier warnings in April, when the US listed India among several countries facing reciprocal trade measures. At that time, the tariff hike was delayed to allow for further discussions.
The announcement comes even as New Delhi and Washington are working to conclude a long-delayed trade agreement. Earlier this week, US Trade Representative Jamieson Greer said that more time was needed to assess India’s openness to market access for American exports.
India and the United States have been engaged in ongoing negotiations to finalize a fair, balanced, and mutually beneficial bilateral trade agreement, according to an official statement. The Indian government emphasized its commitment to protecting the interests of farmers, entrepreneurs, and MSMEs, and reaffirmed that all necessary steps will be taken to safeguard national interests. This approach, it noted, is consistent with India’s stance in other recent trade deals, including the Comprehensive Economic and Trade Agreement (CETA) signed with the United Kingdom.
