US President Donald Trump announced that starting August 1, India will have to pay a 25% tariff on its exports to the US. He also said that India will face an extra penalty for buying energy and weapons from Russia.
Trump posted on his social media platform, Truth Social, saying that although India is considered a friend, the US has done very little trade with India over the years. He blamed India’s high tariffs and strict trade rules, calling them some of the toughest in the world.
Trump added that India buys a large amount of military equipment and energy from Russia, even during the ongoing Russia-Ukraine war, which he strongly criticized. Because of this, he said, India will face both the 25% tariff and the penalty.
Tariffs Effective from August 1, 2025
US Commerce Secretary Howard Lutnick confirmed that the new tariffs and penalties for all targeted countries, including India, will begin on August 1, 2025. He made it clear there will be no delays or extensions. “Customs will start collecting the money from that date,” he added.
India-US Trade Deal Still Not Finalized
Despite efforts, India and the US have not yet signed a trade agreement. Talks began during Prime Minister Narendra Modi’s visit to the US, but five rounds of discussions have not led to a deal. A sixth round is planned for the end of August when a US team will visit India.
Yesterday, Trump had warned that India might face 20–25% tariffs if a trade deal wasn’t reached. Indian officials told Reuters that these tariffs could be temporary, as both sides are still trying to finalize an agreement by this fall.
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A major reason for the delay is that India is not willing to open its agriculture and dairy markets, which has become a key sticking point in the trade talks.
