President Donald Trump announced Wednesday that the United States will impose a 25% tariff on all Indian goods starting August 1, citing the country’s ongoing military and energy partnerships with Russia amid the war in Ukraine. In addition to the tariff, Trump promised an unspecified “penalty” to be levied against India for what he called “all things not good.”
The decision marks a sharp turn in U.S.-India trade relations and comes as part of Trump’s broader push to realign American foreign policy around economic leverage and national interest.
“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,” Trump posted on Truth Social. “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… INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST.”
He added, “WE HAVE A MASSIVE TRADE DEFICIT WITH INDIA!!!”
According to data from the U.S. Trade Representative, the United States exported $41.8 billion in goods to India in 2024 and imported $87.4 billion, resulting in a $45.7 billion trade deficit. Trump has long railed against what he views as lopsided trade agreements and unfair practices by foreign partners, and India is now squarely in his crosshairs.
The move is a clear escalation of Trump’s economic pressure campaign — not just on adversaries like China and Russia, but also on allies who, in his view, undermine U.S. strategic goals by doing business with America’s enemies.
India, which has historically relied on Russia for military hardware and continues to import large volumes of Russian oil, has maintained a policy of strategic non-alignment, refusing to break ties with Moscow. Trump’s decision to impose the tariff — which aligns with his “America First” economic agenda — signals that those days may be over.
While the 25% tariff will take effect in early August, the White House has not yet detailed the nature of the additional penalty. National Security officials and Treasury Secretary Scott Bessent have previously floated the idea of “massive tariffs” on countries aiding Russia through energy purchases.
“The Chinese take their sovereignty very seriously. We don’t want to impede on their sovereignty, so they’d like to pay a 100% tariff,” Bessent said Tuesday, referencing similar discussions with Beijing.
Trump has also grown increasingly impatient with Russian President Vladimir Putin over the continued violence in Ukraine. Just days ago, he shortened his previously declared 50-day timeline for a peace deal, citing renewed Russian missile strikes on Ukrainian cities.
“You have bodies lying all over the street,” Trump said of recent attacks. “And I said, ‘That’s not the way to do it.’”
The tariffs on India are being introduced under the broader umbrella of Trump’s “Liberation Day” economic doctrine, which aims to recalibrate U.S. trade partnerships and punish governments that support America’s geopolitical foes. Initially set at 26%, the tariffs on India were scaled slightly down to 25% for August implementation.
While India has yet to issue a formal response, the move is likely to stir tensions between the two nations. Prime Minister Narendra Modi has attempted to maintain warm relations with Trump, but the country’s deep-rooted defense cooperation with Russia could put that relationship to the test.
With the clock ticking toward August 1, all eyes will now be on New Delhi — and whether Trump’s economic pressure campaign produces results or triggers a broader trade rift.
The post Trump Slaps India With 25% Tariff, Unspecified ‘Penalty’ For Dealing With Russia appeared first on Real News Now.
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