Trump Slaps 25% Tariff and Penalty on India Over Russia Ties

US President Donald Trump has announced a 25% tariff on Indian goods starting August 1, along with an additional penalty over New Delhi’s continued oil and military imports from Russia amid the ongoing Ukraine conflict.

In a post on Truth Social, Trump stated that despite being ‘friends’, trade with India has remained limited due to what he called unfair practices.

"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," he wrote.

Trump further criticized India’s close ties with Russia, especially in the defense and energy sectors.

“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!”

He also highlighted the trade imbalance between the two nations, posting separately that the US has a "massive trade deficit" with India.

The move follows recent warnings from Republican Senator Lindsey Graham and NATO leaders, who urged strong economic measures against countries that continue business with Russia. Talks over a potential India-US trade agreement remain stalled, with Indian officials insisting any deal must align with national interests.

As the new tariff regime kicks in, it is expected to have significant implications for Indian exporters, particularly in sectors like textiles, gems, electronics, and pharmaceuticals.