Trump's Trade Tantrum: 25 Per Cent Tariff And Unspecified 'Penalty' On India Starting 1 August—All About It

India will face a 25 per cent tariff on exports to the United States starting 1 August, US President Donald Trump announced on Wednesday (30 July) via Truth Social, his social media platform, NDTV reported.

In addition to the 25 per cent tariff, Trump imposed a penalty on India, though the exact amount remains unspecified.

He referred to India as America’s "friend" but criticised its purchases of Russian military equipment and oil.

August 1 marked the deadline set by Trump for reciprocal tariffs on several countries, including India.

Initially announced in April, higher tariffs were later reduced and paused to facilitate discussions.

In a brief but direct post, Trump called India "our friend" while expressing dissatisfaction with what he described as "far too high tariffs" that rank among the highest globally.

He also criticised "strenuous and obnoxious non-monetary trade barriers."

He further accused both India and China of financially supporting Russia’s ongoing war against Ukraine—a conflict that has lasted for three years and which Trump had earlier claimed he he could end within 24 hours of being sworn in on 20 January.

"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," Trump said.

"Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of energy... at a time when everyone wants Russia to stop the killing in Ukraine. India will, therefore, be paying a tariff of 25 per cent, plus a penalty for the above, starting August 1...," he added.

This announcement comes amid ongoing efforts by India and the US to finalise a trade deal.

US Trade Representative Jamieson Greer stated on Monday that the Trump administration requires additional time to assess India’s willingness to further open its market to American exports.

Negotiations have stumbled over the US’ demand for concessions in India’s dairy and agriculture sectors, which are sensitive due to the potential impact of cheaper American goods on Indian farmers.

Earlier last month, following an agreement with Indonesia that reduced tariffs to 19 per cent, Trump declared that a trade deal with India is only a matter of time.

"We're going to have access to India... you have to understand, we had no access to any of these countries. Our people couldn't go in. We're getting access now because of the tariffs," he had said.

Also Read: Trump Announces 25 Per Cent Tariff On India In Social Media Rant Over Trade Deal