WASHINGTON : President Donald Trump confirmed on Wednesday that the United States will impose a 25% tariff on goods imported from India beginning August 1, unless a trade deal is reached. The decision marks a dramatic turn in the ongoing U.S.-India trade negotiations, which have been in limbo for months.
Speaking to reporters, Trump was blunt: “Yeah, I think so,” he said when asked whether India would face higher tariffs in the absence of an agreement. He later took to Truth Social to double down on the move.
“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.
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In the same post, Trump accused India of maintaining close energy and defense ties with Russia, stating, “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.”
While Trump did not elaborate on the “unspecified penalty” India may also face on August 1, the tariff announcement underscores his frustration with the current state of trade relations.
Talks between the two nations have stalled over key sectors—particularly agriculture and dairy—with India emphasizing the need to protect its domestic market and millions of small farmers. U.S. Trade Representative Jamieson Greer recently noted that while discussions remain constructive, India’s trade policy “has been protectionist for a very long time.”
India’s Commerce Minister Piyush Goyal remains optimistic, telling reporters last week that the two countries are making “fantastic progress” and aiming for a “very consequential partnership.” However, no official deal has been announced, and India’s commerce ministry has yet to comment on the tariff threat.
Until recently, the U.S. was India’s largest trading partner, with bilateral trade reaching $190 billion in 2024. Despite India lowering tariffs on items like Bourbon whiskey and motorcycles, the U.S. still runs a $45 billion trade deficit with the country—an imbalance Trump appears determined to reduce.
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