Trump slaps 25% tariffs on India, warns of more over Russian energy purchases

US President Donald Trump said he would impose a 25% tariff on India starting Friday, August 1, and suggested he would add an additional penalty over the country’s energy purchases from Russia.

In a post to Truth Social on Wednesday, Trump said India had tariffs that were “among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country.”

“Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE, ” he added. “INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST.”

A day earlier, Trump said a trade deal with India has yet to be finalized and signaled that Indian exports could face tariffs as high as 25% if no agreement is reached ahead of a looming 1 August deadline.

Speaking to reporters aboard Air Force One, Trump reiterated his longstanding criticism of India’s tariff regime, calling it one of the highest in the world and suggesting that the current leniency may not last much longer.

“India has been a good friend, but India has charged basically more tariffs, almost more than any other country,” Trump said on Tuesday. “You just can’t do that.”

Asked directly whether tariffs in the range of 20% to 25% were on the table, he responded, “I think so.”

India was preparing for the possibility of elevated tariffs on a wide range of exports to the US, Reuters had reported earlier.

Indian government officials said the two sides have completed five rounds of negotiations, with another round expected in mid-August.

The officials hope to reach a broader bilateral agreement by October, but have so far refrained from offering new concessions ahead of the Friday deadline.

They noted that while a worst-case tariff order could still materialize, it would likely be temporary and aimed at increasing pressure at the negotiating table.

The Trump administration has already imposed a general 10% tariff in April on countries lacking bilateral trade deals with the US.

But on Monday, the president warned that this could rise to 15–20% for most non-deal partners, with India among those under closer scrutiny.

Officials said the US plans to notify nearly 200 countries of new “world tariff” rates in the coming days.

US Trade Representative Jamieson Greer echoed the president’s position, telling CNBC that India’s market remains insufficiently open to American exports and that talks would require more time.

He added that Trump is not interested in quick wins, but in “good deals.”

India’s commerce minister Piyush Goyal told Reuters last week that talks were making “fantastic” progress, citing India’s willingness to cut tariffs across several product lines and ease certain non-tariff barriers.

However, agriculture and dairy remain politically sensitive areas. India has consistently refused to open the door to genetically modified soy and corn imports from the US or to ease restrictions on dairy products, citing domestic health and livelihood concerns.

Tensions between the two countries have also been complicated by unrelated geopolitical claims.

Trump recently asserted he had helped mediate a ceasefire between India and Pakistan, a statement New Delhi has publicly denied.

Analysts said such comments have added friction to already difficult trade negotiations.

India’s trade surplus with the US reached nearly $46 billion in 2024, with total goods trade between the two countries touching $129 billion.

As Washington targets BRICS nations with broader tariff threats, Indian officials said they are calibrating their approach to preserve preferential access to the US market while shielding politically sensitive sectors.