U.S. President Donald Trump threatens to impose a 25% tariff on Indian exports starting August 1, citing high tariffs and trade barriers. He also warns of penalties over India’s Russian energy imports as trade negotiations stall despite earlier optimism from both sides.
In a surprising and sharply-worded statement, former U.S. President Donald Trump announced that the United States will impose a 25% tariff on imports from India starting August 1. The announcement, made via his social media platform Truth Social, comes amid stalled negotiations between Washington and New Delhi over trade agreements.
Despite referring to India as “our friend,” Trump accused the country of maintaining excessively high tariffs and rigid trade barriers. “India will be paying a tariff of 25 per cent,” Trump posted on Wednesday, adding that the new tariffs will take effect from August 1. He further warned that India could face additional penalties if it continues to purchase energy from Russia.
The proposed penalties include what Trump described as “secondary tariffs” — a 100% tariff on countries buying Russian energy, should Russia fail to declare a ceasefire in Ukraine. He has given a deadline of August 7 for this condition, shortening the previously set timeline to just ten days from his latest announcement.
This aggressive move appears to mark a stark shift from earlier optimism expressed by U.S. officials regarding a trade deal with India. Commerce Secretary Howard Lutnick and Trump himself had repeatedly indicated that a bilateral agreement with India was close to being finalized. India, for its part, has also signaled strong interest in reaching a mutually beneficial accord.
Just last week, Indian Commerce Minister Piyush Goyal shared a positive outlook on the talks, stating in a media interview in London that negotiations were making “fantastic” progress. He expressed hope for concluding a “very consequential partnership” between the two democracies.
India has been one of the earliest nations to engage in trade talks with the U.S. under Trump’s current push for revised international trade policies. However, with only a day left before the August 1 deadline, no formal agreement has been reached, and it seems the talks have hit a roadblock despite accelerated efforts from both sides.
Trump’s tone took a critical turn in his recent post, where he outlined several longstanding grievances against India’s trade policies. “Remember, while India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high — among the highest in the world,” he wrote.
He didn’t stop at tariffs. Trump also attacked India’s non-monetary trade barriers, labeling them as “the most strenuous and obnoxious” globally. He further pointed to India’s military procurement and energy policies, emphasizing its continued reliance on Russian defense hardware and energy supplies. “They have always bought a vast majority of their military equipment from Russia and are Russia’s largest buyer of ENERGY, along with China,” Trump stated. He criticized India’s position during the ongoing war in Ukraine, noting, “at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE.”
This latest development places India in a difficult diplomatic and economic position. On one hand, it continues to view the U.S. as a key strategic partner, especially amid its strained ties with China. On the other, it faces increasing pressure from Washington to reduce its dependency on Russian energy and arms.
Analysts suggest that Trump’s tariff threat may be a calculated negotiation tactic aimed at pushing India to finalize a deal. However, if enforced, the tariffs could have significant consequences for bilateral trade and global supply chains.
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India has not yet issued an official response to Trump’s post. With the August 1 deadline looming, all eyes are on whether the two nations can salvage the negotiations or brace for a new phase of trade friction.
