In a significant development that could impact bilateral trade flows, US President Donald Trump has announced a 25 percent tariff on imports from India, effective from August 1, 2025. The announcement was made via a post on Trump’s Truth Social platform on Wednesday, July 30.
Trump justified the move by criticizing India’s long-standing protectionist trade policies, which, he claimed, have hindered meaningful trade between the two nations.
“While India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high - among the highest in the world - and they have the most strenuous and obnoxious non-monetary trade barriers of any country,” Trump wrote.
Penalties on Indian exports remain unclear
In addition to the 25 percent tariff on general imports from India, Trump also indicated that Indian exports to the US would face penalties, though no specific details were provided regarding which products would be affected or the size of these penalties.
Trade deal talks still ongoing
The tariff announcement comes despite months of ongoing trade negotiations between the two countries. According to an unnamed Indian government official, a US delegation is expected in New Delhi in mid-August to continue talks on a free trade agreement (FTA).
“The imposition of the 25 percent tariff on Indian exports to the US could be a temporary measure during the course of FTA talks,” the official noted.
India has not yet received an official tariff letter from the US government regarding the new measures. However, the source confirmed that in recent weeks Trump has sent similar tariff notifications to at least 20 other countries, all scheduled to take effect from August 1.