Washington: US President Donald Trump announced Wednesday that India will face a 25% tariff, plus additional penalties, starting August 1. Trump accused New Delhi of unfair trade practices and extensive energy and arms relations with Russia.
According to Anadolu Agency, Trump made the announcement on Truth Social, stating, "INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST." While he did not disclose specifics about the "penalty," Trump criticized India's trade barriers and connections with Russia. He highlighted that despite the friendship between the two nations, trade has been limited due to high tariffs imposed by India.
US-India trade remains significant, with goods reaching approximately $129 billion in 2024, while the US experiences a $45.7 billion trade deficit with India, as reported by the Office of the United States Trade Representative. Trump described India as having rigorous non-monetary trade barriers and pointed out the substantial trade deficit with the South Asian country.
Trump also mentioned India's military equipment purchases from Russia and its energy relations, noting, "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."
The imposition of the new tariff is part of a broader escalation in US tariff actions in 2025 under the Trump administration. The measures aim to pressure trading partners through stringent deadlines, with the threat of exclusion from US markets.
In a separate statement, Trump reiterated the firmness of the August 1 deadline for "reciprocal" US tariffs on countries worldwide. He emphasized, 'THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE ... IT STANDS STRONG, AND WILL NOT BE EXTENDED,' calling it "A BIG DAY FOR AMERICA."
The US has recently set multiple tariff deadlines amid trade tensions with various countries, some of which have been extended as negotiations continue.