Donald Trump announces 25% tariff plus penalty on India

US President Donald Trump on Wednesday announced a 25% tariff on Indian imports, effective from August 1. The decision follows a period of uncertainty after the initial announcement during the Liberation Day tariff rollout. India, which was earlier expected to face a 26% tariff, received a temporary extension that ends on August 1. Trump confirmed the new rate through multiple posts on his Truth Social account.

In his statement, Trump said, “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.” He further added, “INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST.”

Trump also referred to India’s continued trade and defence ties with Russia as a major reason behind the penalties. “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,” he wrote. His remarks came after he recently warned of secondary tariffs on countries buying oil from Russia.

In a separate post, Trump emphasized the trade imbalance, stating, “WE HAVE A MASSIVE TRADE DEFICIT WITH INDIA!!!” Earlier, during an interaction aboard Air Force One, Trump reiterated his view that “India has charged basically more tariffs than almost any other country,” while calling India a “good friend.”

Earlier in July, Indian Commerce Minister Piyush Goyal said that India would not enter any trade agreement under external pressure or fixed deadlines. He maintained that India would finalise any deal only if it aligns with national interest and is properly concluded. No formal response from India has been issued so far regarding the newly announced tariffs.