U.S. President Donald Trump has imposed a 25% tariff on India in the wake of the coming tariff deadline on Friday. Trump has also issued a penalty above the duties starting on August 1st, but has not specified the amount.
The President argued that India’s tariffs are far too high, despite doing relatively little business with them over the years. He said New Delhi’s levies are among the highest in the world, with the most “strenuous and obnoxious” non-monetary trade barriers of any nation.
Trump slams India over energy deals with Russia
BREAKING: President Trump imposes a 25% tariff on India and a “penalty” beginning August 1st for buying Russian energy and military equipment. pic.twitter.com/j5bMFysXs4
— The Kobeissi Letter (@KobeissiLetter) July 30, 2025
Trump condemned India for purchasing a vast majority of their military equipment from Russia. He also noted that India was Russia’s largest buyer of energy, along with China. The President argued that it was not good since the world wants Russia to stop the war in Ukraine.
India’s Prime Minister Narendra Modi met with Trump in February and agreed to commit to purchasing oil and natural gas from the U.S. The country’s Foreign Secretary Vikram Misri also acknowledged that India could increase its energy purchases from the U.S. from $15 billion to $25 billion in the future.
According to official data, New Delhi had reduced its energy imports from Russia. Saudi Arabia and Iraq by over 70% from January to April 2025. The U.S. Senate had also threatened to introduce legislation that would impose 500% tariffs on countries that import energy from Russia.
The deal was part of the countries’ goal of doubling bilateral trade to $500 billion over the next five years. Gauri Jauhar, executive director at S&P Global Commodity Insights, argued that oil and natural gas imports from the U.S. could boost India’s diversity of long-term sources of supply.
The U.S. is also expected to hike tariffs on imports from Brazil to 50%, 35% for Canada, 30% for Mexico, and 25% for South Korea on Friday. Trump also mentioned that the August 1st deadline will not be extended.
India seeks better U.S. deal by Autumn
Indian officials are allegedly unfazed by U.S. President Donald Trump’s 25% levies starting August 1. The country’s officials plan to continue with talks with the U.S. for a trade deal by the fall of this year, regardless of Trump’s decision to impose levies with an additional penalty.
Bloomberg reported, citing people familiar with the matter, that Indian officials are still hoping to secure a bilateral trade deal with the Trump administration by Autumn. The officials want to continue negotiations even as Trump has imposed higher tariffs on the country’s imports.
The officials believe the duties imposed starting Friday are just a temporary hurdle they can overcome with more talks on a broader deal in the fall. India was among the first countries to initiate trade talks with the White House.
“They have expressed strong interest in opening portions of their market, we of course are willing to continue talking to them. But I think we need some more negotiations on that with our Indian friends to see how ambitious they want to be.”
–Jamieson Greer, U.S. Trade Representative.
India has been calling for reduced import duties to match the 19% rates given to Indonesia and the Philippines. The report also revealed that the New Delhi officials were not concerned about the deadline since negotiations are expected to continue in August, with U.S. officials expected to visit the country the same month.
Bloomberg highlighted that Indian officials expect that only 10% of exports will be affected from July to September after the U.S. imposes 25% levies. The report also revealed that the officials expect sectors including gems, jewelry, and electronic goods to be impacted by the increased tariffs.
After finalizing the terms of reference for a trade deal, India and the U.S. had agreed to a fall deadline after Vice President JD Vance visited the country in April. According to the report, both nations previously considered a multi-phase approach to a bilateral trade deal, settling for a temporary agreement to cover the levies.
