By Anthony Marcus for Eurasia Business News, July 30, 2025. Article n°1668.

U.S. President Donald Trump has announced the implementation of a 25% tariff on imports from India, effective August 1, along with unspecified penalties related to India’s continued purchases of Russian military equipment and energy.

In a post on his Truth Social network, he said India was a friend of the U.S. but criticized high Indian tariffs. “INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%,” Trump posted, adding that India will also pay a “penalty” for buying Russian goods. The 25% tariff represents a slight modification of the levies that were already set to take effect this week. In April, Trump had set the tariff on Indian imports at 26% before pausing them to allow for negotiations.

  • 25% tariff: The new tariff will apply to all Indian imports starting August 1, 2025.
  • Unspecified penalties: In addition to the tariff, Trump stated there will be extra penalties due to India’s ongoing procurement of Russian oil and military hardware. The exact nature or form of these penalties was not disclosed in his public statements.

Context of this measure

Trump justified these actions by citing India’s high tariffs on U.S. goods, strict non-monetary trade barriers, and its leading role as a purchaser of Russian energy and defense equipment, particularly amid the ongoing war in Ukraine.

He characterized these steps as part of broader reciprocal tariffs scheduled for other countries and as a means to pressure nations to reduce support for Russia.

Limitations

As of now, no further details on the penalties—such as their scale, target sectors, or implementation mechanisms—have been released by the Trump administration or U.S. trade officials.

There is no published information on any immediate Indian government response, or on the expected impact for key industries or the global supply chain.

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© Copyright 2025 – Eurasia Business News. Article no. 1668