President Donald Trump said on Wednesday (July 30) the United States will impose a 25% tariff on goods imported from India, as well as an unspecified penalty for buying Russian weapons and oil, on Aug. 1.

Washington

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

Global Tariffs

President Donald Trump has announced that the United States will impose a 25 percent tariff on goods imported from India. The decision, which singles out India more than other major trading partners, is intended to address what Trump described as high Indian tariffs and limited market access for American products. Trump also warned of unspecified penalties against India for its continued purchases of Russian weapons and oil.

Indian trade officials expressed disappointment at the tariff but stated that they remain engaged with the U.S. to reach a bilateral trade agreement. Trade negotiators from both countries have held several rounds of discussions, particularly over market access for American agricultural and dairy products. Meanwhile, Russia remains India's top oil supplier, accounting for 35 percent of India's oil imports in the first half of 2025.

Trump says U.S. to hit India with 25% tariff starting August 1

President Donald Trump on Wednesday said the U.S. will impose a 25 percent tariff on goods imported from India starting August 1. He also said India will face an unspecified penalty for buying Russian weapons and oil. The decision singles out India more severely than other major trading partners and could potentially strain relations. Trump voiced frustration with India's trade policies in a Truth Social post, saying its tariffs are far too high. Kevin Hassett is Trump's White House economic advisor. India's had a market that's been pretty much closed to American products, and we've been wide open to theirs. And I think President Trump is frustrated with the progress we've made with India, but feels that a 25 percent tariff will address and remedy the situation in a way that's good for the American people. Ajay Sahai, the director general and CEO of the Federation of Indian Export Organizations, said India remains engaged with the U.S. to reach a bilateral trade agreement. The 25 percent tariff on India is a little disappointing on us. We are constructively engaged with the U.S. on the BTA. We are also not certain what will be the added penalty, which he's talking about. But at least now we know that whatever we have to do is with reference to 25 percent, I think buyer and seller will start negotiating and to see what extent that can be absorbed. Trade negotiators from the two countries have held multiple rounds of discussions to resolve contentious issues, particularly over market access for American agricultural and dairy products. Meanwhile, Russia continues to be the top oil supplier to India. In the first six months of 2025, Russian oil made up 35 percent of overall supplies. In his online post, Trump said India has, quote, always bought a vast majority of their military equipment from Russia and are Russia's largest buyer of energy, along with China. That comes a day after U.S. Treasury Secretary Scott Besant said he warned Chinese officials that continued purchases of sanctioned Russian oil would lead to big tariffs due to legislation in Congress.

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Trump says U.S. to hit India with 25% tariff starting August 1

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