US President Donald Trump has announced a 25% tariff on Indian goods starting August 1, along with an additional penalty. He said the decision is based on India’s continued oil and military purchases from Russia during the Ukraine war. Trump, in a post on Truth Social, called India a friend but claimed trade between the two countries has been limited due to India’s high tariffs and strict trade rules. He warned that these actions come at a cost.

Penalty on India over Russia ties
Trump stated that India has sourced the majority of its defense equipment and energy supplies from Russia and continues these dealings even amid the ongoing Ukraine conflict. He also criticized India’s trade policies, labeling them as some of the most restrictive and inequitable globally. According to Trump, these decisions hurt US-India trade. He made it clear that while diplomatic ties remain, India’s actions have led to this economic response. The new 25% tariff and penalty will come into effect on August 1.
#WATCH | On a question by ANI regarding whether he is open to negotiating with India on the tariffs, US President Donald Trump says, “We are talking to them now. We will see what happens. India was the highest or just about the highest-tariff nation in the world…We will see. We… pic.twitter.com/BviM6uOce3
— ANI (@ANI) July 31, 2025