Trump to levy 25% tariff on Indian imports from 1 August, criticising India’s high tariffs and ties with Russia.
Earlier 26% tariff was paused for talks, but with negotiations stalled, the new penalty will now take effect.
India hasn’t officially responded yet, while analysts warn of rupee depreciation and economic fallout.
U.S. President Donald Trump announced on Wednesday that all goods imported from India will be subjected to a 25 % tariff, taking effect on 1 August 2025. In addition, he stated that India will incur an unspecified penalty, citing New Delhi’s continued purchases of Russian military equipment and energy supplies, a decision he framed as supporting Russia amidst the Ukraine conflict.
This tariff imposition follows earlier reciprocal trade measures introduced in April, under which India was initially subject to a 26 % levy, though its implementation was postponed to allow trade negotiations to progress
As of today’s announcement, negotiations appear stalled, with an August 1 deadline fast approaching; Trump previously declared there would be no further extensions.
India’s Commerce Ministry has yet to issue an official response. Analysts warn that the move may weaken the Indian rupee past ₹87 per US dollar, aggravating capital outflows and currency pressure.
Finally, despite trade tensions, Trump has previously hinted that the U.S. is “very close to making a deal with India”, suggesting that negotiations remain ongoing even as the tariff threat looms.
(With inputs from PTI)
