Trump hits India with 25% tariff over trade barriers, plus penalty linked to Russia ties
Make us a preferred source
Make us a preferred source on Google
The news: US President Donald Trump said the country will impose a 25% tariff on goods imported from India starting 1 August and an additional penalty due to India’s purchases of Russian military equipment and energy.
In a social media post Trump said India’s import tariffs are “far too high, among the highest in the World,” and accused it of maintaining “the most strenuous and obnoxious non-monetary Trade Barriers of any Country.”
The context: Trump’s announcement follows several months of talks negotiations that had aimed to resolve market access issues, particularly in agriculture and dairy, but failed to reach agreement. Indian officials have resisted opening the domestic market to imports of wheat, corn, rice and genetically modified soybeans, citing risks to the livelihood of millions of Indian farmers.
The unspecified penalty also comes after Trump threatened secondary tariffs on Russia – that is tariffs on countries buying Russian products - if Russia did not agree to a ceasefire in Ukraine by 8 August.
India is the second-largest buyer of Russian fossil fuels and imports about 36% of its weapons from Russia, according to data from Kpler. India exported about USD87 billion in goods to the US in 2024, according to the US Census Bureau. The US currently has a USD45.7 billion trade deficit with India, the data shows.
What they said: "Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high," Trump posted.
"Also, 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! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST."
The sources: Donald Trump, Reuters, Bloomberg, Associated Press
