New Delhi. U.S. President Donald Trump has made a big announcement regarding India. On his social media platform Truth Social, Trump said that starting August 1, 2025, the U.S. will impose a 25% import tariff on goods coming from India. Along with this, he also warned of an additional penalty on India for buying weapons and oil from Russia and China.
This announcement has caused a stir in India, especially as both countries were in talks for a trade agreement — though no deal has been finalized yet.
Called India a Friend, But Criticized Policies
Trump referred to India as a “friend” of the U.S., but also complained that India puts high tariffs on American goods — some of the highest in the world. He added that trade between India and the U.S. remains low due to India’s strict non-tariff rules and other barriers.
He criticized both India and China for continuing to purchase weapons and oil from Russia, even as the global community is urging Russia to end the war in Ukraine. Due to this, he said, a penalty will be applied on top of the 25% tariff, though details are yet to be revealed.
He Had Warned Earlier Too
A few weeks ago, Trump had warned that if India didn’t finalize a trade deal by August 1, it could face a 20–25% tariff. Five rounds of talks have been held between both nations, but disagreements, especially in agriculture and dairy sectors, have delayed a deal.
India has refused to open its market to American maize, soybean, and dairy products. In April, Trump mentioned a 26% tariff but later reduced it to 10% to allow time for negotiations. Now, with the deadline approaching, he has returned to the 25% rate.
India’s Response
Indian officials are monitoring the situation and preparing a response. They say the tariff could be temporary, as another round of talks is expected mid-August when a U.S. delegation visits India. The aim is to reach a comprehensive trade agreement by September or October. Rather than imposing counter-tariffs, India is focusing on continued dialogue to resolve the matter.
What Will Be the Impact?
In 2024, India-U.S. trade reached $191 billion. India exported about $42 billion worth of manufactured goods and energy (like LNG, crude oil, coal) to the U.S. The new tariff may make Indian exports more expensive and could impact sectors like textiles, pharmaceuticals, and automobiles. However, experts believe the effect may be smaller compared to countries like China and Vietnam, as India is less dependent on U.S. trade.
Opposition Reacts
Opposition leaders in India have criticized the government. Social media posts quoting Congress leader Rahul Gandhi say he had already warned that Trump’s trade stance would hurt India. Some leaders are calling it a diplomatic failure and questioning what it means for India’s exporters and stock markets.
A New Challenge in India-U.S. Relations
Trump’s tariff move has created a new challenge in India-U.S. ties. The Indian government is now pushing for a better deal during the next round of talks in August. If the tariff comes into force, India may consider retaliatory steps, but for now, its focus remains on diplomacy and negotiation. The next few weeks will be key in shaping the future of India-U.S. trade relations.
