WASHINGTON, D.C.: President Donald Trump said that the US will put a 25% tariff on Indian exports and that India would face an undisclosed penalty for continuing to buy Russian oil and military equipment. These rules will go into effect on August 1, 2025.
Trump said at a White House press conference after signing a Congressional bill that trade talks with New Delhi are still going on, but India is still “one of the highest tariff nations in the world,” with duties as high as “100 points, 150 points or percentages,” and even “175 per cent and higher than that.”
Earlier today, Trump wrote on Truth Social about his decision: “Remember, while India is our friend, we have done relatively little business with them over the years 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.”
He made it clear that the increased taxes and fines were related to India’s strategic relationship with Russia during the situation in Ukraine. “Also, they have always bought most of their military gear from Russia, and they are Russia’s biggest buyer of energy, along with China, at a time when everyone wants Russia to stop the killing in Ukraine. Not good!” Starting on August 1st, India will have to pay a 25% tariff and a fine for the above. Thank you for paying attention to this. The post said, “MAGA!”
Trump also made it clear during the press conference that the sanctions are connected to India’s membership in the BRICS group, which he called “basically a group of countries that are anti-United States.” He said that the alliance was “attacking the dollar” and that “we’re not going to let anybody attack the dollar.” It’s partly because of BRICS and partly because of trade. This trade position is bad. We had a huge deficit.”
Trump called Indian Prime Minister Narendra Modi “a friend of mine” even though these new rules were in place. He also repeated his worries about the US trade deficit with India. He stressed that India “doesn’t do a lot of business with us.” We don’t buy from them, yet they sell us a lot. Do you know why? Because the tax is so high.” He did say, though, that India is now “willing to cut it very substantially.”
“We’re talking to India now,” Trump added. “We’ll see what happens.” It doesn’t matter much if we make a deal or charge them a particular amount. But by the end of this week, you’ll know. August 1st is a huge day for this country because money will flow into the United States like never before.
This declaration comes after Trump put a 26% tariff on Indian goods coming into the US on April 22, 2025. He later withdrew the tariff. The current 25% tariff on a wide range of goods from India, excluding pharmaceuticals, semiconductors, and critical minerals, will affect industries like automobiles, auto parts, steel, aluminum, smartphones, solar panels, marine products, gems, jewelry, and some processed food and agricultural items.
India has responded cautiously, with the Ministry of Commerce and Industry saying it has “taken note” of Trump’s statement and is “studying its implications.” India reaffirmed its dedication to finalizing a “fair, balanced, and mutually beneficial bilateral trade agreement” and stressed that it would do “all steps necessary to secure our national interest.” Officials say that trade talks have been going on for a while and that a US group is likely to be in Delhi by mid-August for the sixth round of talks. Reports say that India has become less willing to open up its agriculture and dairy sectors, which have been sticking points in the talks.