Donald Trump Imposes 25% Tariff on Indian Exports from August 1, Cites Trade Barriers and Russia Links

US President Donald Trump has announced a 25% tariff on Indian exports starting August 1, criticising India’s high trade barriers and close ties with Russia.

In a sharp escalation of trade tensions, US President Donald Trump on Wednesday announced that India will face a 25% tariff on its exports to the United States starting August 1, 2025. The announcement comes just two days before the reciprocal tariff deadline, with no breakthrough in trade negotiations between the two nations.

Posting on his social media platform Truth Social, Trump launched a scathing attack on India’s trade policies and its continued alignment with Russia, particularly in military and energy sectors.

Confirming the move, Trump wrote: 

"India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August 1st. Thank you for your attention to this matter."

The new tariff regime, according to Trump, comes in response to what he described as unfair trade practices and strategic decisions that, in his view, run counter to global calls to isolate Russia amid the ongoing Ukraine conflict.

“Tariffs Are Far Too High… Obnoxious Trade Barriers”

While acknowledging India as a “friend”, Trump did not hold back in criticising its economic policies. 

"Remember, 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 said.

India’s high tariff rates have long been a sticking point in trade discussions with the US, particularly during Trump’s first term, when he withdrew India’s preferential trade status under the Generalized System of Preferences (GSP) in 2019.

Military and Energy Ties with Russia “Not Good,” Says Trump

Trump also pointed to India’s deep-rooted defence and energy partnerships with Russia as problematic. "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!" he stated.

India’s continued purchase of Russian oil and weapons systems has drawn scrutiny in Western circles, particularly since Russia’s full-scale invasion of Ukraine in 2022. However, New Delhi has defended its policy as being rooted in strategic autonomy.

No Trade Deal, No Relief

The Trump administration’s decision to impose a blanket tariff and penalty on India’s exports appears to be a direct consequence of the failure to conclude a new trade agreement. While negotiations had been ongoing over the past several months, both sides remained at odds over key issues such as agricultural market access, digital trade, and tariff ceilings.

As of now, there has been no official response from the Indian government. The new tariffs could significantly impact Indian exports to the US, which totaled nearly $100 billion in 2024.

The coming days are likely to see heightened diplomatic activity as New Delhi assesses its options ahead of the August 1 deadline.