US President Donald Trump on Wednesday announced that India will face a 25% tariff along with an additional penalty starting August 1, 2025. The decision comes as part of Trump’s efforts to address what he described as India’s high tariffs, trade barriers, and continued purchases of oil and military equipment from Russia amid the Ukraine conflict.

In a strongly worded post on Truth Social, Trump wrote,

“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.”

The President further criticized India’s reliance on Russian energy and defense equipment, adding,

“India has always bought a vast majority of their military equipment from Russia and is 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!”

US Points to Massive Trade Deficit

Trump also highlighted America’s “massive trade deficit” with India, stating that the current trade relations are not balanced. Last week, US Senator Lindsey Graham warned that Trump would impose stern tariffs on countries continuing to purchase oil from Russia, explicitly mentioning India, China, and Brazil.

India-US Trade Deal Still in Limbo

The announcement comes after days of speculation about the tariff rate Trump would impose on India. Just a day earlier, he hinted at a 20–25% tariff but had not finalized the figure. Trump also reiterated that while India is a “good friend,” its trade policies are “unfairly restrictive” toward the US.

Earlier this month, Indian Commerce Minister Piyush Goyal asserted that India does not agree to trade deals based on deadlines and will only sign agreements that align with its national interests.

The upcoming tariffs are expected to further strain trade negotiations between the two nations, potentially affecting sectors ranging from technology and agriculture to defense.