In a significant trade move, US President Donald Trump announced a 25% tariff with additional penalties on imports from India starting August 1. The announcement, made via his social media platform Truth Social, cited India’s high tariffs and ongoing military and energy deals with Russia as key reasons.

Trump accused India of imposing “the most strenuous and obnoxious non-monetary trade barriers” and maintaining some of the world’s highest tariff rates, making it difficult for the US to do substantial business with the country. He also pointed to the large US-India trade deficit as a persistent issue.

“While India is our friend, we’ve done relatively little business with them because their tariffs are far too high,” Trump wrote. He further criticised India’s continued purchase of Russian military equipment and energy supplies amid the ongoing Ukraine war.

“At a time when everyone wants Russia to stop the killing in Ukraine, these things are not good,” he added, concluding with, “India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August first. Thank you for your attention to this matter. MAGA!”

This development comes despite ongoing trade talks between New Delhi and Washington. Last week, Finance Minister Nirmala Sitharaman had expressed optimism about progress in the negotiations. However, the imposition of punitive tariffs now casts doubt on the likelihood of a near-term agreement.

India recently signed a landmark Free Trade Agreement with the UK, hailed by Commerce Minister Piyush Goyal as a “game-changing” deal benefitting farmers, MSMEs, professionals, and the broader economy.