US Threatens 25% Tariffs on India Over Russia Ties
Washington Demands India Cease Russian Energy and Arms Purchases
The United States is poised to impose significant tariffs on goods imported from India, a move President **Donald Trump** announced is tied to New Delhi’s continued engagement with Russia. The penalties are slated to take effect August 1st, coinciding with a critical deadline for a potential trade agreement.
Trade Deal Deadline Looms Amidst Russian Sanctions Pressure
In a statement on his Truth Social platform, President **Trump** revealed the impending 25% tariffs, which will be accompanied by an “unspecified penalty.” These measures target India’s purchases of Russian energy and weaponry, particularly in light of international calls for Russia to halt its actions in Ukraine. **Trump** characterized India as a friend but criticized its “far too high” tariffs, labeling the nation a significant trade abuser.
The U.S. will impose 25% tariffs on goods imported from India plus an unspecified penalty for buying Russian energy and weapons. India is a friend but their tariffs are far too high, among the highest in the world. They are a big abuser of trade ties. pic.twitter.com/6UuQ7k5R2n
— Donald J. Trump (@realDonaldTrump) July 29, 2025
India’s Trade Stance Under Scrutiny
India has not yet formally responded to the tariff announcement, as negotiations for a comprehensive trade deal with the US have been ongoing for months. Last year, the United States registered a substantial trade deficit of $45.8 billion with India. This comes after **Trump** previously indicated tariffs of up to 27% on Indian goods in April, which were subsequently put on hold.
The US Trade Representative, **Jamieson Greer**, acknowledged that while discussions with Indian counterparts have been constructive, New Delhi’s trade policies have historically been “protectionist.” He noted India’s focus on safeguarding its domestic market, while **Trump** seeks agreements that open foreign markets more broadly to American businesses.
Agriculture Remains Key Hurdle in Talks
Disagreements over agriculture and dairy products represent a significant sticking point in the trade negotiations. For years, the US has sought greater access to India’s farm sector, viewing it as a vast, largely untapped market. However, India has maintained strong protections for its agriculture, citing concerns for food security and the livelihoods of millions of small farmers.
Indian Commerce Minister **Piyush Goyal** recently reiterated that the agriculture sector is sensitive for India and assured that farmers’ interests would be “well protected.” Despite these challenges, **Goyal** expressed optimism about reaching an agreement with Washington soon, reporting “fantastic progress” in talks and hoping for a “very consequential partnership.”
Bilateral trade between the US and India reached $190 billion in 2024, making the US India’s largest trading partner. A joint target has been set by **Trump** and Indian Prime Minister **Modi** to more than double this figure to $500 billion. India has already lowered tariffs on several items, including Bourbon whiskey and motorcycles, but the persistent US trade deficit remains a key concern for President **Trump**.
The US trade deficit with India has been a persistent issue, reaching $45 billion in the previous year. This imbalance fuels **Trump**’s objective to secure more favorable trade terms for American industries.
As of the latest World Bank data, India’s average applied tariff rate on imports across all products stood at 12.7% in 2023, reflecting its protective trade stance. This contrasts with the 3.5% average applied tariff rate of the United States in the same year (World Bank, 2023).
