U.S. President Donald Trump has announced a 25% tariff on Indian imports beginning August 1, 2025.
He also warned of an additional penalty tied to India’s continued energy and defense ties with Russia.
Posting on Truth Social, Trump criticized India’s trade practices, saying the country enforces “the most strenuous and obnoxious non-monetary Trade Barriers of any Country.” He added, “India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August First.”
Trump cited India’s role as Russia’s largest energy buyer, along with China, as justification for the added penalty. “At a time when everyone wants Russia to STOP THE KILLING IN UKRAINE,” Trump noted, “India continues to strengthen Russia’s economy through oil purchases and military deals.”
This announcement follows Trump’s ultimatum, giving Russia 10 days to agree to a ceasefire in Ukraine. As part of this pressure campaign, Trump is also considering secondary sanctions targeting countries importing Russian oil.
The new import duties cast doubt on the prospects of a bilateral trade agreement between Washington and New Delhi. Despite high-level diplomacy, including Prime Minister Narendra Modi’s visit to the White House in February, India’s hopes for preferential treatment now appear uncertain.
India remains one the United States’ largest trading partner, with total two-way trade reaching $127.9 billion in 2024.
Despite the tariff escalation, Indian officials remain committed to pursuing a trade agreement by fall 2025, per Bloomberg.
