President Donald Trump announced on July 30, that the United States will impose a sweeping 25% tariff on all goods imported from India, effective August 1, citing India’s “among the highest tariffs in the world” and what he described as “strenuous and obnoxious non‑monetary trade barriers” targeting U.S. exporters. In a Truth Social post he called India a “friend”, but sharply criticized its heavy purchases of Russian energy and military equipment, saying “ALL THINGS NOT GOOD!” and warned that India would face an additional, unspecified penalty tied to its dealings with Russia .
Trump also indicated this penalty relates not only to trade barriers but also to India’s involvement in the BRICS alliance, portraying it as aligned against U.S. interests and suggesting further punitive measures could follow . Though the full details of the penalty remain unclear, he tied it broadly to India’s continued purchases of Russian arms and oil .
Later on the same day, Trump offered some flexibility: at a White House briefing he acknowledged that talks with New Delhi were still ongoing and left open the possibility of change by the end of the week .
India responded cautiously, saying the government had “taken note” of the announcement and was “studying its implications”, while reaffirming its commitment to finalizing a “fair, balanced and mutually beneficial” trade agreement with Washington and protecting the interests of local industry and workers .
