President Donald Trump announced Tuesday that the United States will impose a 25% tariff on Indian goods beginning August 1. The move, made official through a post on Truth Social, marks a sharp escalation in trade tensions between the two partners.
“India will therefore be paying a tariff of 25%, plus a penalty,” Trump wrote, citing longstanding frustrations with India’s high tariffs and “obnoxious” non-monetary trade barriers.

Trump also criticized India’s defense and energy ties with Russia, calling them unacceptable amid the ongoing war in Ukraine. “They have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of energy,” he said. “All things not good!”
The announcement comes despite previous efforts to finalize a U.S.-India trade agreement. Trump has argued that while India is a friend, the U.S. has done “relatively little business” with the country due to its protectionist stance.