Trump announces 25% tariff on India starting Aug. 1, unspecified penalties for buying Russian energy
UNITED STATES, JUL 31 – The tariff targets India's high trade barriers and its purchases of Russian military and energy supplies amid the Ukraine conflict, affecting sectors worth $87 billion, experts said.
- President Donald Trump announced on July 30, 2025, that the U.S. will impose a 25% tariff on goods imported from India, effective Friday.
- Trump linked this tariff and an additional unspecified penalty to India’s ongoing purchases of Russian military equipment and energy despite Western sanctions.
- The announcement came after recent negotiations on trade agreements involving the EU, Japan, the Philippines, and Indonesia, all intended to expand opportunities for American exports.
- Trump stated on Truth Social that "India is our friend" but criticized its "far too high" tariffs and called India’s trade barriers "obnoxious," while the Census Bureau reported a $45.8 billion U.S. goods trade deficit with India last year.
- The tariffs and penalty could raise import tax revenues to offset budget deficits and create domestic jobs, though economists expect uncertain economic impacts tied to inflation and slower growth.
146 Articles
146 Articles
India holds its ground for now as Trump slaps 25% tariff and threatens penalty for trade with Russia
India had hoped its close ties with the US and shared concerns over the growing assertiveness of China would shield it from the worst of the tariffs. But at 25 per cent, tariff on India is higher than most Asia peers as well as the EU. Read more at straitstimes.com.
US targets India with tariffs over Russian oil purchases
US is set to impose a 25 percent tariff on Indian goods, along with additional import taxes, citing India’s continued purchase of Russian oil and military equipment. President Donald Trump announced the decision on Wednesday, framing it as a response to India’s economic ties with Moscow.
Trump ups the ante in India trade talks with 25% tariff threat
In a bid to extract concessions from New Delhi in months-long trade talks, Donald Trump announced that he will impose 25 percent tariffs on Indian exports to the US starting August 1. He also threatened to penalise India for its purchases of Russian oil. In this segment, we explain what the US hopes to achieve with this move – and why India isn't rushing to strike a deal. Meanwhile, the US and South Korea have reached an agreement to lower US ta…
Impact of Trump Tariff on Indian Businesses: An Explainer
Get latest articles and stories on India at LatestLY. US President Donald Trump on Wednesday announced the imposition of a 25 per cent additional import duty plus penalty on goods imported from India. India News | Impact of Trump Tariff on Indian Businesses: An Explainer.
Trump's new tariff to impact Indian economy
US President Donald Trump's decision to slap harsh tariffs on Indian exports and a "penalty" on purchases of Russian weapons and energy will cost thousands of jobs and could fundamentally change the nature of bilateral ties, experts said Wednesday. Months of negotiations between the two countries over an interim trade deal had stalled in recent weeks over Trump's sweeping demands and New Delhi's reluctance to fully open its agricultural and dair…
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