Trump Hits India with 25% Tariff, Plus Penalty Over Russia Ties
U.S. President Donald Trump has announced a sharp escalation in trade measures against India, declaring a 25% tariff along with an additional penalty starting August 1. The decision, shared via his Truth Social platform on Wednesday, stems from India’s continued purchase of oil and military equipment from Russia amid the ongoing war in Ukraine.
Despite calling India a “friend,” Trump criticized the country for what he described as “the most strenuous and obnoxious non-monetary trade barriers of any country,” accusing New Delhi of maintaining excessively high tariffs on U.S. goods. He further stated that India has done “relatively little business” with the U.S. over the years due to these barriers.
“India has always bought a vast majority of their military equipment from Russia and is one of Russia’s largest energy customers. At a time when the world 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,” Trump wrote.
He also cited a massive trade deficit between the U.S. and India as another reason behind the new tariffs.
The move follows recent comments from U.S. Senator Lindsey Graham and NATO officials warning countries — including India, China, and Brazil — of steep tariffs for continuing trade with Russia. Graham specifically said Trump would consider imposing a 100% tariff on nations helping fund Russia’s “war machine” through oil purchases.
Trump’s announcement comes after weeks of uncertainty over the final tariff rate. Just a day earlier, he hinted at a 20–25% range. Earlier this month, India’s Commerce Minister Piyush Goyal emphasized that any trade agreement with the U.S. would be accepted only if it aligns with India’s national interest and is properly concluded.
This new tariff replaces a previously proposed 26% duty that was temporarily paused under Trump’s Liberation Day policy, which gave countries a 90-day window to renegotiate trade terms. After granting India an additional extension until August 1, the U.S. is now enforcing the penalty as negotiations failed to yield a finalized deal.