Home / Business and Economy / Trump Imposes 25% Tariff on Indian Goods, Citing Russia Ties
Trump Imposes 25% Tariff on Indian Goods, Citing Russia Ties
31 Jul
Summary
- Trump announces 25% tariff on Indian goods from August 1
- Tariffs due to India's purchases of Russian oil and military equipment
- India currently has a $44.4 billion trade surplus with the US
In a surprise move on July 31, 2025, US President Donald Trump announced the imposition of a 25% additional import duty, plus an unspecified penalty, on goods imported from India. The new tariffs are set to take effect from August 1, 2025.
According to the White House, the decision was made due to India's continued purchases of crude oil and military equipment from Russia, despite ongoing international sanctions. The US has accused India of undermining its efforts to isolate Russia economically following the invasion of Ukraine.
The tariffs are expected to impact a range of Indian exports to the US, including telecom equipment, apparel, and gems and jewelry. This comes at a time when the two countries are engaged in trade agreement negotiations, raising concerns about the future of these talks.
India currently holds a significant trade surplus of $44.4 billion with the US across goods and services. The new tariffs could further strain the economic relationship between the world's two largest democracies.
