25% Tariff on Indian Exports & Penalties for Russian Deals, ETCFO

2 min read

United States President Donald Trump on Wednesday confirmed that a 25% tariff will be levied on Indian exports starting August 1, 2025, citing the absence of a bilateral trade agreement and India’s deepening ties with Russia.

Announcing the move just two days ahead of the reciprocal tariff deadline, Trump said the action was necessary due to India’s protectionist policies and strategic alignment with Moscow, particularly in the areas of defence procurement and energy imports.

“India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August 1st. Thank you for your attention to this matter,” Trump posted on social media.

He sharply criticised India’s high tariff regime and non-tariff barriers, describing them as some of the most restrictive in the world. The former president, now seeking a return to the White House, also signalled an additional penalty on India for continuing to import Russian oil and military equipment, which he said undermines global efforts to isolate Moscow over its actions in Ukraine.

“While India is our friend, we have done relatively little business with them because their tariffs are far too high among the highest globally and their non-monetary barriers are the most severe and unreasonable of any country,” Trump said.

The announcement is expected to further strain the trade relationship between Washington and New Delhi, which has already faced hurdles amid stalled negotiations on the proposed Comprehensive Economic and Trade Agreement (CETA). The penalty over Russian ties adds a geopolitical dimension to what was earlier a trade-centric dispute.

(This is a developing story)

  • Published On Jul 30, 2025 at 06:32 PM IST

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