Donald Trump announces 25% tariff on India from August 1, cites high trade barriers and Russia ties
Trump flays India’s trade environment, describing its non-monetary trade barriers as “among most strenuous and obnoxious in the world.”
PTC Web Desk: In a sharp policy move, US President Donald Trump announced on Wednesday that India would face a 25% tariff on its exports to the United States starting August 1. The declaration, made through his Truth Social platform, reignites trade tensions between the two countries despite what he referred to as a "friendly" relationship.
“While India is our friend, we’ve done relatively little business with them over the years because of their extremely high tariffs and restrictive trade practices,” Trump wrote. He went on to criticise India’s trade environment, describing its non-monetary trade barriers as “among the most strenuous and obnoxious in the world.”
The US President also took aim at India’s strategic alliances, particularly its continued defense and energy purchases from Russia. “India has long relied on Russia for military equipment and remains one of its top energy buyers, along with China — all while the global community wants Russia to stop the killing in Ukraine,” Trump stated.
He concluded his message with a firm warning: “India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August 1st. Thank you for your attention to this matter. MAGA!”
In another statement, US President Donald Trump claimed that the United States has a "massive trade deficit" with India. The comment follows a series of warnings from US officials and allies targeting nations continuing economic ties with Russia.
Last week, US Senator Lindsey Graham cautioned that Trump would impose severe tariffs on countries that persist in purchasing oil from Russia—specifically naming India, China, and Brazil. Graham alleged that these nations are responsible for buying nearly 80% of Russia’s discounted oil, indirectly fueling President Vladimir Putin’s war efforts. “President Trump is going to impose a 100% tariff on all those countries, punishing them for helping Putin,” Graham asserted.
Echoing similar concerns, NATO chief Mark Rutte also warned that nations conducting trade with Russia—particularly India, China, and Brazil—could face 100% tariffs and additional sanctions. Rutte urged the three countries to cease their trade relations with Moscow.
These developments come amid prolonged speculation over the tariff rate the US might impose on India. Earlier this week, Trump hinted at a possible 20–25% tariff on Indian goods but clarified that a final decision had not yet been made. Speaking aboard Air Force One, Trump referred to India as a “good friend,” but criticised its high tariff rates on US products. “India has been a good friend, but India has charged basically more tariffs than almost any other country… You just can’t do that,” he remarked.
India, however, has maintained a cautious stance. Earlier this month, Commerce Minister Piyush Goyal reiterated that India would only sign a trade agreement with the US once it is fully negotiated and aligned with national interests. “We do not enter into trade agreements based on deadlines,” Goyal emphasised.
During his Liberation Day address, Trump had initially announced sweeping reciprocal tariffs on multiple countries, including a proposed 26% duty on Indian exports. However, facing mounting international pressure, he postponed the implementation, granting a 90-day window for negotiations.