Donald Trump criticised India's trade practices and defense ties with Russia, announcing a 25% tariff effective August 1
He also confirmed that penalties will be imposed for energy and arms imports from Russia, with no delays in implementation
US President Donald Trump on Wednesday declared 25% tariff rate for India starting August 1. Besides this, the country will also face an additional penalty for buying energy and arms from Russia. This tariff rate is 1% less than 26% Trump declared in his April 2 ‘Liberation Day’ conference.
In a post on Truth Social, Trump wrote, “…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 noted that India has always bought a vast majority of their military equipment from Russia, and is “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! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!” the US President added.
Meanwhile, Commerce Secretary Howard Lutnick also confirmed that Trump’s reciprocal tariffs will come into force on August 1, 2025. He stated that there will be no extensions or grace periods. “So no extensions, no more grace periods. August 1, the tariffs are set. They'll go into place. Customs will start collecting the money, and off we go”.
India on Trump's 25% Tariffs
"India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective," the Ministry of Commerce in an official statement.
It stated that the government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs.
"The Government will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK," it added.
Trump Tariffs on Other Nations
On May 2025, Trump reached a tariff-reduction agreement where China agreed to cut retaliatory duties from 125% to 10%, while US retained a baseline tariff in addition to future market access commitments.
Trade officials from China and the US concluded their talks in Stockholm, and as per the US negotiators, the potential extension of a tariff pause between the two countries will not be agreed to until President Trump signs off on the plan.
Additionally, the United States and European Union signed a trade deal on Sunday, bringing an end to a months-long standoff. Following negotiations between Trump and European Commission President Ursula Von der Leyen, a 15% tariff has been imposed on EU goods entering the US and significant US energy and military equipment purchased by EU, BBC reported.
The list of goods on which tariffs will be imposed include cars, computer chips and pharmaceuticals. In yet another trade deal signed this month, Trump announced that the US will now levy a 19% tax on imports from the Philippines.
