U.S. President Donald Trump announced on July 30 that his administration will impose a 25% tariff on goods imported from India and an additional tax to penalize India’s continued purchases of Russian oil.
In a post on Truth Social, Trump called India a “friend” but criticized its high tariffs on American products and its defense and energy deals with Russia, which he claims help fund Moscow’s war in Ukraine.
The new measures will take effect starting Friday as part of Trump’s broader tariff review targeting countries he accuses of unfair trade practices or indirectly supporting Russia.
The announcement follows recent trade deals between the U.S. and the EU, Japan, the Philippines, and Indonesia, which Trump says will open more markets for American goods while giving Washington leverage to raise tariffs on imports when needed.
Trump argues that revenue from tariffs will help offset the growing budget deficit caused by income tax cuts and boost domestic manufacturing jobs.
Last year, the U.S. trade deficit with India reached $45.8 billion, according to the U.S. Bureau of Economic Analysis — meaning the U.S. imported far more than it exported to India.
India, home to over 1.4 billion people, is seen by Washington as a key geopolitical counterweight to China. However, New Delhi has maintained close ties with Moscow and has not joined Western sanctions against Russia.
Earlier this year, Trump had said India would begin buying U.S. oil and natural gas, but the continued Russian energy imports prompted the new penalty.
