President Donald Trump announced on Wednesday that the U.S. will impose a 25% tariff on imports from India starting August 1.
In addition to the tariff, India will also be hit with an unspecified penalty on the same date, although Trump did not disclose the details.
Trump, in a post on Truth Social, stated that while India is considered a friend, the U.S. has struggled to build strong trade ties due to India’s extremely high tariffs and burdensome non-monetary trade barriers, which he described as among the worst in the world.
He also criticized India for relying heavily on Russian military equipment and energy, calling it problematic given global efforts to stop the war in Ukraine. “India, along with China, is one of Russia’s largest energy buyers—this is not good,” Trump wrote.
India’s commerce ministry, which leads trade talks with the U.S., has not issued a response.
Trump’s move effectively ends months of negotiations toward a limited trade agreement between the two nations. Talks had focused on improving market access for U.S. products, particularly agricultural and dairy goods. However, India resisted opening its markets to imports like wheat, rice, corn, and genetically modified soybeans, citing the risk to its millions of small-scale farmers.
The new tariffs are expected to affect India’s $87 billion in exports to the U.S. in 2024, especially in sectors like textiles, pharmaceuticals, gems and jewelry, and petrochemicals. Currently, the U.S. runs a $45.7 billion trade deficit with India.
India now joins other countries targeted under Trump’s “Liberation Day” trade initiative, which seeks to rebalance trade relationships by pushing for more equitable terms. The White House had earlier warned India about its steep tariff regime—nearly 39% on farm goods, with some products like vegetable oils, apples, and corn facing tariffs of 45–50%.
This setback comes despite previous commitments by Trump and Indian Prime Minister Narendra Modi to finalize the first phase of a trade pact by fall 2025, and boost bilateral trade from $191 billion in 2024 to $500 billion by 2030.
The tariffs may prompt retaliation from India, potentially impacting U.S. exports worth $42 billion, including manufactured goods and energy exports like natural gas, crude oil, and coal.
While Indian officials have often highlighted the strategic importance of U.S.-India ties—especially in countering China—they have also insisted on protecting national interests in agriculture, digital sovereignty, and domestic subsidies.
