WASHINGTON, D.C — U.S. President Donald Trump has announced a 25% tariff on goods imported from India, accusing New Delhi of unfair trade practices and criticizing its continued purchases of Russian energy and weapons amid the war in Ukraine.
The new tariffs — along with an unspecified additional penalty — will take effect from August 1, the deadline set by the White House for a long-delayed trade deal between the two countries.
“India is a friend, but their tariffs are far too high — among the highest in the world,” Trump wrote on his Truth Social platform on Tuesday. “And they continue to buy Russian weapons and energy when everyone wants Russia to STOP THE KILLING IN UKRAINE.”
The move throws into doubt months of trade negotiations between Washington and New Delhi, which have made uneven progress despite public optimism from both sides. India has not issued an official response to the announcement.
A Tense Trade History
The U.S. had a $45.8 billion trade deficit with India in 2024, and Trump has long accused the country of maintaining “protectionist” policies that disadvantage American exporters.
Back in April, the president had threatened tariffs of up to 27% on Indian goods, which were temporarily paused to allow more time for talks.
“You just can’t do that anymore. But now I’m in charge,” Trump said on Tuesday, reviving the “tariff king” label he has previously used to describe India.
U.S. Trade Representative Jamieson Greer reiterated that Washington continues to engage New Delhi in “constructive” talks, but acknowledged that India’s domestic-focused trade policies remain a major hurdle.
“India has been protectionist for a very long time,” Greer told reporters. “President Trump is committed to securing deals that substantially open up markets to U.S. products.”
Agriculture, Dairy Remain Sticking Points
Among the major obstacles to a deal are agriculture and dairy market access.
Washington has long pushed for more openness in India’s massive farm sector — which it sees as an untapped market — but Indian officials have consistently pushed back.
Commerce Minister Piyush Goyal last week said India’s position is rooted in food security and protecting the livelihoods of millions of small-scale farmers.
Still, he maintained that India remains “optimistic” about a resolution.
“We’re making fantastic progress. We hope to conclude a very consequential partnership,” Goyal told Reuters, signaling hope even as tensions escalated.
India has already reduced tariffs on several U.S. exports, including Bourbon whiskey and motorcycles, but those steps have not quelled U.S. concerns over the trade imbalance or India’s energy ties to Moscow.
Strategic Tensions and Russian Links
India’s continued importation of Russian oil and arms has drawn increasing scrutiny from Washington and other Western allies since Russia’s 2022 invasion of Ukraine.
Trump’s latest comments mark his strongest rebuke of India’s Moscow ties to date.
The new tariffs are also expected to complicate efforts to double bilateral trade between the two countries from $190 billion in 2024 to a target of $500 billion, set by both Trump and Indian Prime Minister Narendra Modi.
It remains unclear whether the tariff measures are final or a negotiating tactic to force India back to the table.
Trump’s administration has a history of using tariffs as leverage to extract concessions.
Until now, India had been Washington’s largest trading partner. With these fresh penalties, the relationship appears poised for further strain.
