President Donald Trump announced Wednesday that India will face a new 25% tariff starting August 1, along with an unspecified penalty for what he described as unfair trade practices and continued economic alignment with Russia.
The move marks a sharp escalation in Trump’s ongoing effort to rebalance global trade and punish nations he says are enabling Russia’s war in Ukraine.
“India will therefore be paying a tariff of 25%, plus a penalty… starting on August 1,” Trump wrote on Truth Social.
Tariff Reduced Slightly from “Liberation Day” Threat
The final 25% rate is slightly lower than the 26% tariff Trump floated on “Liberation Day”, but it still lands at the higher end of the 20–25% range Trump had considered just a day earlier.
“While India is our friend,” Trump wrote, “they have the most strenuous and obnoxious non-monetary Trade Barriers of any country.”
Trump cited India’s high import duties, restrictive trade practices, and their decision to buy military equipment and oil from Russia as the key drivers of the policy shift.
Russia Trade Penalty Tied
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