Trump announces 25% tariffs on India

President Trump announced that the United States will impose 25% tariffs on imported goods from India, along with an additional, unspecified penalty in response to India's ongoing purchases of Russian oil and military equipment. Writing on his Truth Social platform, Trump said these measures will take effect on August 1, the deadline set by the U.S. for reaching a trade agreement with India. While calling India a friend, he criticized what he described as "some of the highest tariffs in the world" and expressed frustration over India’s continued engagement with Russia, stating, “everyone wants Russia to STOP THE KILLING IN UKRAINE.”

This move follows earlier tariff threats made in April, when Trump had floated levies as high as 27% on Indian goods, though those measures were subsequently paused. Now, with the new deadline fast approaching, India and the U.S. are under pressure to finalize a deal or face escalating trade tensions. Trump has long criticized India's trade practices, repeatedly labeling the country a “tariff king” and a “big abuser” of trade rules. “But now I’m in charge, and you just can’t do that,” he asserted. In response, India’s government said it is assessing the implications of Trump's statements and emphasized its commitment to protecting domestic interests, especially those of small businesses and farmers. “The government will take all steps necessary to secure our national interest,” it said in a statement.

Despite the sharp rhetoric, both sides have continued trade negotiations throughout the year, alternating between cautious optimism and frustration. U.S. Trade Representative Jamieson Greer said this week that conversations with India have been “constructive,” though he also acknowledged the country’s historically protectionist stance. Key sticking points remain in sectors like agriculture and dairy, where India has resisted foreign access in the name of food security and rural livelihoods. Indian Commerce Minister Piyush Goyal recently reaffirmed India’s protective stance toward its farm sector but also voiced optimism, telling Reuters that the two countries are making “fantastic progress” and that India hopes to reach “a very consequential partnership” with the U.S. Bilateral trade reached $190 billion in 2024, and leaders from both nations have set an ambitious goal of expanding that to $500 billion—though the U.S. still runs a $45 billion trade deficit with India, something Trump is eager to narrow.