Trump Slaps 25% Tariff And Extra Penalty On India Over Russian Ties
Washington/New Delhi, July 30 (TNA) In a stunning escalation of his administration’s protectionist agenda, President Donald Trump has announced a hefty new 25% tariff on all Indian goods exported to the United States, effective August 1.
The move, declared Wednesday via Trump’s Truth Social platform, also comes with the threat of an additional, yet-unspecified penalty specifically targeting India’s continued purchases of Russian military equipment and oil.
Despite labelling India “our friend,” Trump pulled no punches in his critique. He blasted India’s “far too high” tariffs and what he described as “the most strenuous and obnoxious non-monetary trade barriers of any country.” He underscored that, while bilateral trade remains relatively low, India’s ongoing defense and energy ties with Moscow “at a time when everyone wants Russia to stop the killing in Ukraine — all things not good!” were unacceptable.
Trump’s ultimatum comes with trade talks between Washington and New Delhi still deadlocked and just ahead of a critical August 1 deadline for countries to finalize new trade agreements. According to U.S. Commerce Secretary Howard Lutnick, there will be no further extensions or grace periods—tariffs will be enforced without delay.
Indian officials, meanwhile, have voiced confidence in ongoing negotiations, calling their position strong even as the rupee slipped and markets reacted nervously to the news.
Key industries including pharmaceuticals, electronics, and textiles could be hit hard, as India exported nearly $90 billion worth of goods to the U.S. last year. The penalty for Russian procurements—and hints at broader, tougher tariffs for countries not aligning with America’s policies on Moscow— mark a sharp uptick in economic pressure tactics with global implications.
Indian officials, meanwhile, have voiced confidence in ongoing negotiations, calling their position strong even as the rupee slipped and markets reacted nervously to the news.
The White House has not yet detailed the scope of the penalty for military and energy purchases from Russia, but Trump’s message was unequivocal: “INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST.”