US President Donald Trump on Wednesday announced that India will face a 25% tariff on all goods exported to the United States starting August 1, 2025, along with an additional penalty for purchasing energy and military equipment from Russia.
This decision marks a sharp escalation in Washington’s trade stance towards New Delhi, as the US president linked India’s high tariffs and its close economic and defence ties with Russia to the move.
“Remember, while India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high, among the highest in the world, and they have the most strenuous and obnoxious non-monetary trade barriers of any country,” Trump wrote on Truth Social.
“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. INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST,” he added.
Context: Ultimatum to Russia
Trump’s announcement comes a day after he gave Russia a 10-day ultimatum to halt its war in Ukraine, warning of sweeping tariffs and penalties on nations that purchase Russian commodities — particularly oil. The US and its allies view these purchases as indirect support for Moscow, providing it with economic strength amid global sanctions.
Tariffs to Be Enforced Without Delay
The reciprocal tariffs will be enforced starting August 1, 2025, with no extension, Trump clarified:
“THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE — IT STANDS STRONG, AND WILL NOT BE EXTENDED. A BIG DAY FOR AMERICA!!!”
Impact on India-US Trade Deal
This development further complicates the ongoing India-US trade negotiations, which have yet to produce an agreement despite five rounds of talks.
A sixth round of talks is scheduled for late August when a US team visits India, but Washington has signalled that tariffs will proceed regardless of the status of these negotiations.
Key unresolved issues remain in agriculture and dairy market access, with India refusing to open these sectors despite American pressure.
What’s Next?
Indian officials, quoted by Reuters, have indicated that these tariffs may be “temporary” if a bilateral trade deal is finalised later in the year. However, as of now, India faces a 25% tariff and unspecified penalties for its Russian energy and defence deals, starting August 1.
