President Donald Trump announced Wednesday that the United States will impose a 25% tariff on Indian imports beginning August 1, escalating trade tensions with one of Washington's key strategic partners over what he characterized as unfair trade practices and close military and energy ties to Russia.
The tariff, confirmed in a post on Trump's Truth Social platform, comes just days ahead of the president's previously set August 1 deadline for new reciprocal tariffs on imports from nearly 180 countries. In the same announcement, Trump said India will also face an unspecified "penalty" for continuing purchases of Russian arms and fossil fuels.
"INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST," Trump declared. The White House has not provided further detail on what the penalty entails.
India was the United States' 10th-largest trading partner in 2024, according to U.S. Census Bureau data. Major imports from India include pharmaceuticals, petroleum products, telecom equipment, and ready-made garments. Since April, Indian exporters have faced a baseline 10% tariff, which was temporarily paused following market volatility but is now being raised sharply.
The president justified the move by accusing India of imposing excessive barriers to U.S. trade. "They have the most strenuous and obnoxious non-monetary Trade Barriers of any Country," Trump wrote. "We have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World."
He also condemned India's continued energy and defense partnership with Moscow. "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 - ALL THINGS NOT GOOD!"
Trump's tariff escalation follows recent threats of 100% "secondary" tariffs on countries continuing to buy Russian oil and gas, unless President Vladimir Putin agrees to a ceasefire in Ukraine. India, China, and Brazil would be among the hardest hit under that plan.
While the 25% tariff is slightly below the 26% and 27% rates previously floated for India, it still marks a significant increase from the April baseline and puts India in a worse position than other countries. Recent trade deals reached with Vietnam, Indonesia, Japan, and the European Union set their new tariffs at 20%, 19%, 15%, and 15% respectively.
"THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE - IT STANDS STRONG, AND WILL NOT BE EXTENDED. A BIG DAY FOR AMERICA!!!" Trump wrote in another post.
During a return flight from Scotland on Tuesday, Trump told reporters aboard Air Force One that he had decided on the 25% figure, characterizing it as "firm but fair." Earlier this year, Trump invoked national security as justification to impose tariffs unilaterally, sidestepping congressional approval.
