The US President Donald Trump has announced that all Indian exports to the United States will face a 25% tariff beginning August 1, along with an additional, unspecified penalty.

The move, revealed via a post on Trump’s social media platform Truth Social, marks a significant escalation in trade tensions between the two countries.

Trump defended the decision by citing India’s continued defense and energy partnerships with Russia, despite its designation by Trump as “a friend” of the US.

“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.

The president also accused both India and China of indirectly funding Russia’s war in Ukraine by continuing to import Russian energy and military goods. “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,” Trump claimed.

He added, “India will, therefore, be paying a tariff of 25 percent, plus a penalty for the above, starting August 1.”

This announcement follows earlier tariff threats made in April, which were temporarily scaled back to allow room for diplomatic negotiations.

However, with talks reportedly stalled, Trump had set August 1 as a deadline to implement reciprocal trade measures on multiple countries, including India.

Speaking to reporters upon his return from a trip to Scotland, Trump reiterated his concerns; “India has been a good friend… but has charged basically more tariffs than almost any other country... you can`t do that.”

The decision also comes amid a deadlock in US-India trade discussions, particularly around American access to India’s tightly protected dairy and agricultural sectors; areas politically sensitive in India due to the impact on local farmers.

US Trade Representative Jamieson Greer noted earlier this week that Washington needs more time to evaluate India’s willingness to lower barriers and open its markets to US goods.

The new tariffs are likely to further strain bilateral ties and could impact sectors ranging from pharmaceuticals and textiles to information technology—industries heavily reliant on US exports.

Source: NDTV