Trump Announces 25% Tariffs on India From August 1, Citing India Trade Barriers
US President Donald Trump announced that a 25% tariff will be imposed on Indian imports beginning August 1, along with an additional, unspecified penalty. In a post on his social media platform, Truth Social, Trump pointed to India’s high tariffs, stringent non-monetary trade barriers, and its continued military and energy relationship with Russia as the reasons for the new levies.
“India is our friend, but we have… done relatively little business with them because their tariffs are far too high… and they have the most strenuous and obnoxious non‑monetary trade barriers of any country,” Trump stated. He also criticized India for its defense and energy ties with Moscow, adding, “They have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE- ALL THINGS NOT GOOD!”
In response, officials in New Delhi are reportedly studying Trump’s announcement to understand the legality and scope of both the 25% tariff and the additional penalty. A government source acknowledged that while the 25% figure is not unusually high in the context of previous trade disputes, India will carefully examine the details of the new measures.
The move marks a significant escalation in the ongoing trade negotiations between the two countries. In April, Trump had considered levies of up to 27% on Indian goods before pausing the plan to allow for further talks. While US Trade Representative Jamieson Greer has recently described discussions with Indian counterparts as “constructive,” he has also highlighted the challenges posed by India’s protectionist trade policies.
This development places the burgeoning India-US trade relationship at a critical juncture. The United States was India’s largest trading partner in 2024, with bilateral trade valued at $190 billion. Both President Trump and Prime Minister Narendra Modi have publicly aimed to increase this figure to $500 billion. However, the US trade deficit with India, which currently stands at $45 billion, has remained a key point of friction for the Trump administration. Despite recent Indian efforts to lower tariffs on select US products, such as Bourbon whiskey and motorcycles, this new announcement signals a significant setback in trade relations.
