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Trump slaps 25% tariff and penalty on India starting August 1

Donald Trump stated that India would face an additional penalty beyond the agreed 25% for its purchases from Russia, citing the ongoing war in Ukraine as the reason.

News Arena Network - Washington D.C. - UPDATED: July 30, 2025, 06:30 PM - 2 min read

Prime Minister Narendra Modi with US President Donald Trump.


US President Donald Trump on Wednesday announced the imposition of new tariffs on Indian imports, a decision that will take effect on August 1. The tariffs will amount to 25 per cent, in addition to a penalty.


President Trump detailed his reasoning in a post on his social media platform, Truth Social. He began by acknowledging that India is a 'friend' but then pivoted to a critique of the trade relationship between the two nations. He stated that the US has 'done relatively little business with them' over the years because India's tariffs are 'far too high, among the highest in the world.' He also claimed that India maintains 'the most strenuous and obnoxious non-monetary trade barriers of any country.'


A significant factor cited by the President was India's close defense and energy ties with Russia. He noted that India has 'always bought the vast majority of their military equipment from Russia' and is 'one of Russia’s largest energy buyers, along with China.' Trump presented this as a serious issue, particularly at a time when the world is seeking to stop the conflict in Ukraine, calling these actions 'all things not good!'

 

Also Read: India’s tariff cuts on Indonesian palm oil import to boost trade


The announcement concluded with the declaration, "India will therefore be paying a tariff of 25 per cent, plus a penalty for the above, starting on August 1. Thank you for your attention to this matter. MAGA!". This announcement followed a day after President Trump had hinted at the possibility of such tariffs. When asked by reporters whether tariffs on India could reach as high as 25 per cent, he replied, "Yeah, I think so. India has been; they’re my friends."


The move comes amid months of ongoing trade negotiations between officials from India and the US, which have yet to produce a final agreement. President Trump has consistently pushed for greater access for American goods in the Indian market during these talks. This isn't the first time he has taken action on this issue; he had previously set tariffs on Indian goods at 26 per cent on April 2 as part of his reciprocal trade policy, but those tariffs were paused shortly thereafter.


Also Read: Trump warns India of tariffs up to 25 pc

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