Mohan Sinha
02 Aug 2025, 10:54 GMT+10
WASHINGTON, D.C.: U.S. President Donald Trump declared on July 30 that his administration will impose a 25 percent tariff on imports from India, along with an additional levy targeting the country's continued purchases of Russian oil.
Posting on his Truth Social platform, Trump acknowledged India as "a friend," but criticized what he called "excessively high" Indian tariffs on American exports.
In justifying the penalties, Trump pointed to India's ongoing defense and energy ties with Russia. He argued that India's purchases of Russian military hardware and crude oil were indirectly sustaining Moscow's war in Ukraine. "If we are serious about ending the war, we must stop enabling it," Trump said, announcing the start of what he called a "Russia-related penalty" tariff, set to take effect on August 1.
The move is part of a broader overhaul of Trump's trade policy, which includes renegotiated frameworks with the European Union, Japan, Indonesia, and the Philippines. Trump said those deals would open new markets for American products while giving the U.S. the authority to raise import taxes to support domestic industries and reduce the federal deficit, which has grown following his administration's income tax cuts.
Trump has long used tariffs as leverage to reshape global trade dynamics. While supporters argue the strategy has helped U.S. manufacturing, critics, including many economists, warn that rising import costs often hit American consumers and businesses, fueling inflation and dampening economic growth.
India, now the world's most populous nation, is seen as a key partner in Washington's long-term strategy to counterbalance China's global influence. However, India has maintained a neutral stance on the Ukraine war and has not joined Western sanctions against Russia. Its energy deals with Moscow, including purchases of discounted Russian crude, have drawn repeated concern from U.S. officials.
During a February meeting with Indian Prime Minister Narendra Modi, Trump expressed optimism about a budding energy partnership, claiming that India had agreed to buy American oil and liquefied natural gas. Yet on the flight back from a recent visit to Scotland, Trump told reporters that a comprehensive U.S.-India trade agreement remained unfinished. When asked whether a 25 percent tariff was imminent, he replied cryptically, "We're going to see."
With the new tariff measures set to launch in August, India now joins a growing list of U.S. trading partners facing heightened duties under Trump's revised trade regime — a campaign he says is aimed at protecting American jobs and correcting global imbalances.
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