Washington, D.C.: On Wednesday, July 30, 2025 (local time), US President Donald Trump said that the US would slap a 25% tariff on Indian imports starting August 1, 2025. This announcement represents a significant escalation in trade tensions. Trump said these things were necessary because India has high tariffs on US goods, there is a trade deficit, and New Delhi still has strong relations to Russia, including being a member of the BRICS group.
After signing a bill in Congress, President Trump talked about ongoing trade talks with India at a press conference at the White House. When ANI questioned Trump if the US was still open to more talks over tariffs, he said, “We’re talking to them now.” We’ll have to wait and see. India had the highest or almost the highest tariffs in the world again, with 100 points, 150 points, or percentages. Therefore, India ranked among the top countries in the world. They had 175 percent or more.
Earlier on the day, Trump used Truth Social to make the first announcement. In his post, he said, “Remember, while India is our friend, we haven’t done much business with them over the years because their tariffs are too high, among the highest in the world, and they have the most annoying and difficult non-monetary trade barriers of any country.”
He also directly connected the punishments to India’s connections with Russia in light of the ongoing war in Ukraine. “Also, they have always bought most of their military gear from Russia, and they buy more energy from Russia than anyone else, along with China. This is not good at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE.” Starting on August 1st, India will have to pay a 25% tariff and a fine for the above. Thank you for taking the time to read this. The post said, “MAGA!”
The Dollar and BRICS Are Being Watched
President Trump also criticized India’s membership in the BRICS alliance (Brazil, Russia, India, China, and South Africa) at the news conference. He called BRICS “basically a group of countries that are against the United States” and said that the alliance was “attacking the dollar.”
We’re talking right now, and it’s also BRICS. They have BRICS, which is a group of countries that are against the US. India is a member of that organization, if you can believe it. It’s an attack on the dollar, and we won’t let anyone attack the currency. Partly because of BRICS and partly because of trade. This transaction position is a loss. “We had a huge deficit,” Trump said, stressing the many reasons why his government did what it did.
Trump said again that Indian Prime Minister Narendra Modi is “a friend of mine,” even though the language was strong and tariffs were about to go into effect. But he did highlight that the trading arrangement was not fair. As you know, Prime Minister Modi is a buddy of mine, but they don’t do much business with us. They sell us a lot, but we don’t buy from them. You know why? Because the tax is so high. Their tariffs are some of the highest in the world. Now they’re ready to cut it by a lot. But we’ll have to wait and see. “Now we’re talking to India.”
He ended with a specific deadline: “We’ll see what happens. It doesn’t matter too much if we make a deal or charge them a particular amount. But by the end of this week, you’ll know. This country is going to get a lot of money on August 1st, more than we’ve ever seen before.
Context of Trade and World Politics
This statement comes after Trump’s earlier decision on April 22, 2025, to put a 26% tariff on Indian goods, which he then put on hold. The US goods trade deficit with India was $45.7 billion in 2024, up 5.4% from 2023. The Trump administration often used this number to push for more fair trade terms.
India has relied on Russia for military equipment for a long time. It is thought that 60% to 70% of India’s present military inventory comes from Russia or the Soviet Union. This includes important systems like the S-400 air defense system. during Western countries stopped buying Russian crude oil and put sanctions in place during the Ukraine crisis, India became the biggest customer of Russian crude oil shipped by sea. In 2024-25, Russia supplied almost 35% of India’s crude oil, which was a big jump from before the conflict. India has always defended these acquisitions by pointing out that they are necessary for its energy security and that Russia offers competitive prices.
The Indian government says it has “taken note” of Trump’s choice and is “studying its implications.” It said again that it was committed to reaching a “fair, balanced, and mutually beneficial bilateral trade agreement” and stressed that it was determined to take “all steps necessary to protect our national interest.” Despite the most recent tariff increase, talks for a bilateral trade agreement have been going on for a while. A US group is due to be in India by the end of August for the sixth round of talks.
This new tariff system is likely to affect many Indian export industries, such as autos, auto parts, steel, aluminum, cellphones, solar panels, marine goods, diamonds, jewelry, and some processed food and agricultural goods. Many people think that the Trump administration’s decision is a way to put pressure on India to give more ground in trade discussions and change its geopolitical ties.