WASHINGTON, D.C. —U.S. President Donald Trump on Wednesday announced a 25% tariff on Indian imports beginning August 1, citing what he called unfair trade barriers and India’s continued purchases of Russian military equipment and energy resources.
In a post shared on his official platform, Trump stated that while India is considered a partner, its high tariffs and non-monetary trade barriers have long restricted fair trade with the United States. He also signaled an additional “penalty” on India, though details on that measure remain unclear.
"India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August first," Trump said.
This new tariff replaces an earlier proposed 26% rate announced on what Trump had referred to as "liberation day." The revised rate still places significant pressure on U.S.-India trade relations.
The move also aligns with Trump’s recent escalation of rhetoric against nations trading heavily with Russia, particularly amid ongoing conflict in Ukraine. Trump has previously threatened 100% secondary tariffs on countries continuing to import Russian oil and gas.
India, one of Russia’s major energy buyers, has defended its trade policy decisions as guided by national interest. In a brief statement, India’s Ministry of Commerce and Industry said it is reviewing the situation and remains committed to finalizing a fair and balanced bilateral trade agreement with the U.S.
The announcement comes amid ongoing trade negotiations between the two nations that have yet to produce a comprehensive deal. Trump, meanwhile, has framed the U.S. trade deficit with India as a long-standing issue requiring firm action.
Economists remain skeptical of the broader impact of high tariffs, warning that they could raise prices for U.S. consumers and strain diplomatic ties. It also remains uncertain how additional penalties would be enforced or what form they would take.
As of now, no official comment has been made by the White House regarding the exact nature of the proposed penalty.
