'India will pay 25% tariff plus penalty...': Donald Trump drops trade bombshell, sets Aug 1 date

'India will pay 25% tariff plus penalty...': Donald Trump drops trade bombshell, sets Aug 1 date

In his statement issued on Wednesday, Donald Trump slammed India’s military and energy cooperation with Moscow, calling India Russia’s largest buyer of energy and a major arms customer.

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Donald TrumpDonald Trump
Business Today Desk
  • Jul 30, 2025,
  • Updated Jul 30, 2025 6:19 PM IST

US President Donald Trump has announced a 25% tariff, along with an unspecified penalty, on Indian imports, citing New Delhi’s continued defence and energy ties with Russia. The measure, he stated, would take effect from August 1, 2025.

In a statement posted on Wednesday, Trump said, “India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August first.” He criticised India’s longstanding trade practices, calling its tariffs among the “highest in the world” and accusing the country of imposing “strenuous and obnoxious non-monetary trade barriers.”

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Trump also slammed India’s military and energy cooperation with Moscow, calling India Russia’s largest buyer of energy and a major arms customer. “They have always bought a vast majority of their military equipment from Russia... at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE,” he wrote.

Although India and the U.S. have expanded strategic cooperation in recent years, Trump's comments signal a potential hardline shift in trade policy if he returns to office in 2025. The Biden administration has so far not imposed such measures, despite also raising concerns over India’s Russian defense imports.

Trump said: "India will pay a tariff of 25%, plus a penalty for buying military equipment and oil from Russia. In a statement, Trump said: 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, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country. Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone 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. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!"

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He added that the US has a massive trade deficit with India.

The Indian government has not yet officially responded to Trump’s statement. If implemented, such tariffs could significantly impact bilateral trade ties, which have grown steadily over the last decade. 

Trump had previously imposed 26% tariffs on Indian goods on April 2, citing the need for “reciprocal” trade terms. However, those tariffs were suspended shortly thereafter.

US President Donald Trump has announced a 25% tariff, along with an unspecified penalty, on Indian imports, citing New Delhi’s continued defence and energy ties with Russia. The measure, he stated, would take effect from August 1, 2025.

In a statement posted on Wednesday, Trump said, “India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August first.” He criticised India’s longstanding trade practices, calling its tariffs among the “highest in the world” and accusing the country of imposing “strenuous and obnoxious non-monetary trade barriers.”

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Trump also slammed India’s military and energy cooperation with Moscow, calling India Russia’s largest buyer of energy and a major arms customer. “They have always bought a vast majority of their military equipment from Russia... at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE,” he wrote.

Although India and the U.S. have expanded strategic cooperation in recent years, Trump's comments signal a potential hardline shift in trade policy if he returns to office in 2025. The Biden administration has so far not imposed such measures, despite also raising concerns over India’s Russian defense imports.

Trump said: "India will pay a tariff of 25%, plus a penalty for buying military equipment and oil from Russia. In a statement, Trump said: 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, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country. Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone 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. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!"

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He added that the US has a massive trade deficit with India.

The Indian government has not yet officially responded to Trump’s statement. If implemented, such tariffs could significantly impact bilateral trade ties, which have grown steadily over the last decade. 

Trump had previously imposed 26% tariffs on Indian goods on April 2, citing the need for “reciprocal” trade terms. However, those tariffs were suspended shortly thereafter.

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