Trump Imposes 25% Tariff on India, Trade Talks Still Ongoing

Photo : PTI

United States President Donald Trump has announced a 25% tariff and financial penalty on India for continuing to buy oil from Russia. This new decision will start from August 1, 2025. The announcement has created tension in India-US trade ties and is expected to impact Indian exports to the American market.

Trump stated that even though India is a “friend”, its trade policies are unfair to the US. He claimed India charges very high import duties on American goods while selling a lot of products to the US market. He said this imbalance must be corrected.

The Russia Oil Connection

Trump explained that the US took this decision because India continues to buy large amounts of oil from Russia, even as most Western countries have cut off trade with Moscow due to the war in Ukraine. He added that India has also been a top buyer of Russian military equipment, which raises security concerns for Washington.

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He posted on his social media platform Truth Social:

"India has always bought most of their military equipment from Russia and is Russia's biggest energy buyer after China. At a time when the world wants Russia to stop the war in Ukraine, India keeps buying from them — that’s not good."

Sanctions on Indian Companies Linked to Iran Oil Trade

Alongside the tariff, the US also announced sanctions on six India-based companies that were found trading oil with Iran. These companies are now facing strict penalties from Washington, as the US government has long restricted oil trade with Iran due to political tensions and nuclear concerns.

Trump Targets BRICS Group, Calls It Anti-US

Trump also took aim at the BRICS economic group — which includes Brazil, Russia, India, China, and South Africa — calling it an alliance that is trying to weaken the US dollar. He said this grouping is making trade talks with India even more complicated.

“BRICS is a group that’s basically anti-United States,” Trump told reporters. “India is a member of BRICS, and that’s an attack on the dollar. We’re not going to let anybody attack the dollar.”

India-US Trade Talks Still Underway

Despite the sharp comments and trade penalties, Trump said the US is still negotiating with India on a broader trade deal. He acknowledged that India is now showing a willingness to reduce tariffs but added that the final decision is still pending.

“India has one of the highest tariffs in the world — sometimes 100% or even 175%,” Trump claimed. “They’re now willing to cut it, and we’re in talks. But we’ll see what happens.”

He also hinted that a major decision will be made soon, saying,

“August 1st is a very big day. Money will pour into the US like never before.”

Modi Mentioned, But Trade Comes First

Trump referred to Prime Minister Narendra Modi as a “friend”, but quickly added that friendship does not matter if business terms are not fair. He said the US cannot allow such high trade barriers to continue unchecked.

“Modi is my friend, but they charge too much. They sell a lot to us. We don’t buy much from them because of their high tariffs,” he said.

India’s Response

India has not officially replied to the new tariff announcement yet. However, sources say that the Indian government is reviewing the situation and will take necessary steps to protect the country’s interests. Experts believe this could lead to new strategies in India’s trade and foreign policy in the coming days.

The relationship between India and the US is being tested once again over trade and foreign policy. The 25% tariff and penalties on Indian oil purchases from Russia, along with sanctions on Iran-linked companies, may put extra pressure on India’s economy and international standing.

While talks are still ongoing, both countries will need to balance politics and partnership to avoid further conflict. For now, all eyes are on August 1 to see how this situation unfolds.