US President Donald Trump has announced a 25 percent tariff on Indian imports, along with an additional, unspecified penalty on India for its continued purchase of Russian oil and military equipment. The measures will take effect on Friday, he said.
In a statement posted on his Truth Social account on Wednesday, President Trump said the new tariffs are intended to address a longstanding trade imbalance.
“While India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high,” he wrote.
Trump also criticized India’s defense and energy ties with Russia, saying its purchases have indirectly enabled the ongoing war in Ukraine. As a result, he said, a further penalty will be imposed in addition to the tariffs.
The Indian government responded in a statement, saying it had taken note of the announcement and was currently assessing the implications of the policy.
The move is expected to further strain ties between Trump and Indian Prime Minister Narendra Modi.
Though their relationship was cordial during Trump’s earlier term, recent years have seen growing friction over trade and immigration issues.
Modi also publicly denied Trump’s past claim that he intervened during a brief conflict with Pakistan, reiterating that India does not accept external mediation.
Meanwhile, Pakistan appears to have gained favor with the Trump administration. In June, President Trump hosted Pakistan’s army chief, General Asim Munir, for lunch at the White House — an uncommon honor for a military official who is not a head of state.
The announcement comes amid several newly negotiated trade deals between the US and countries such as the European Union, Japan, the Philippines, and Indonesia.
Trump said these agreements would open foreign markets to US goods while allowing higher tax rates on imports.
He argues that tariff revenues will help reduce the national budget deficit and bring back domestic manufacturing jobs.
However, many economists caution that such tariffs may lead to slower US economic growth and increased inflation, as domestic businesses and consumers bear the cost of higher import prices.
Data from the US Census Bureau shows that the US ran a $45.8 billion goods trade deficit with India last year.
India, with a population of over 1.4 billion, is the world`s most populous country and is seen as a potential counterbalance to China in the Indo-Pacific region. New Delhi has maintained close ties with Moscow and has not joined the Western sanctions imposed on Russia since the start of the Ukraine war.
During a meeting with Modi in February, Trump had suggested that India would soon begin buying US oil and natural gas.
However, when asked on Tuesday about reports that India was expecting tariffs of at least 25 percent, Trump told reporters on his flight back from Scotland, “We’re going to see.” He added that a comprehensive trade agreement with India had not yet been finalized.
