Trump Announces 25% Tariff on Indian Goods from August 1

On July 30, US President Donald Trump announced a 25% tariff on Indian imports starting August 1. In a social media post, Trump stated that India continues to buy weapons and oil from Russia, and for that, the US will impose penalties.

In another post, Trump highlighted the significant trade deficit between the US and India, justifying the imposition of tariffs on Indian goods to address the imbalance.

The Indian government responded by saying it is closely monitoring the impact of the decision and will take necessary steps to protect national interests. On July 30, the Ministry of Commerce issued a statement: “We have seen the US President’s statement on trade. We are assessing its impact. India and the US are working towards a mutually beneficial trade agreement and are committed to this goal.”

Although India is a friend of the US, American trade with India has declined in recent years due to high tariffs and regulatory barriers imposed by India that complicate business for US companies.

India continues to buy a large portion of its defense equipment from Russia. In addition, India, along with China, is purchasing significant volumes of oil and gas from Russia, even as the global community urges Moscow to end its war in Ukraine.

These actions have prompted the US to impose a 25% tariff on all goods imported from India, along with additional penalties. Trump emphasized that all is not well between the two nations.

Trump Earlier Promised Zero Tariff for US Goods in India

On July 17, Trump had stated that US products would soon gain access to Indian markets with zero tariffs, similar to the Indonesia formula. He said, “We’ve made deals with many countries. Another one is coming—perhaps with India. We’re negotiating. When I send the letter, the deal will happen.”

Trump's Trade Moves Extend Beyond India

On July 15, Trump imposed a 19% tariff on Indonesian goods effective August 1. In return, Indonesia will impose zero tariffs on US products entering their market.

US Trade Team to Visit India on August 25

To continue discussions on the Bilateral Trade Agreement (BTA), a US delegation will visit India on August 25 for the sixth round of talks. Both countries aim to complete the first phase of the trade agreement by September or October. There is also a possibility of an interim trade agreement.

The previous round of talks took place in Washington, where India’s chief negotiator Rajesh Aggarwal met US Trade Representative Brendan Lynch to discuss the framework.