By Dayo Ade Olusola |World News| 30 July 2025
President Donald Trump has announced sweeping new trade penalties against India, declaring a 25% tariff on all imports from the country starting Friday and warning of additional financial punishment over New Delhi’s continued ties with Russia.
In a fiery post on Truth Social, Trump accused India of maintaining “obnoxious” trade barriers and turning a blind eye to Russia’s invasion of Ukraine, despite global condemnation.
The former president described India as a “friend” but said its behaviour could no longer go unchecked.
“India has always bought a vast majority of their military equipment from Russia and are Russia’s largest buyer of energy, along with China — all things not good!” Trump wrote. “India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August 1st.”
The surprise move could strain relations between Washington and New Delhi just months after Vice President JD Vance said a trade “road map” had been agreed with Indian Prime Minister Narendra Modi.
First Penalty of Its Kind
India is now the first U.S. ally to face economic penalties for continuing to trade with Russia during its war in Ukraine. The decision follows Trump’s Tuesday threat to impose wider secondary sanctions on nations that fail to support a 10-day ultimatum demanding that Russia end the conflict.
“If Russia does not end the killing in Ukraine, every nation doing business with them will face consequences,” Trump told reporters.
Talks had been ongoing since April, when Trump originally proposed a 26% tariff on Indian goods before reducing the figure to 10%. The new 25% rate comes as negotiations have stalled, despite efforts by U.S. trade officials to strike a broader deal before the 1 August deadline.
Photo: AFP via Getty Images
The White House says it has reached preliminary agreements with the European Union, United Kingdom, Japan, and Indonesia — but not India.
U.S.-India Trade in Focus
India applies average tariffs of 5.2% on U.S. goods, compared to America’s 2.4% tariff rate on Indian imports in previous years.
U.S. exports to India include crude oil, electronics, and industrial machinery — all of which could now become more expensive.
Some analysts say the new tariffs may also be aimed at discouraging Apple from expanding iPhone manufacturing in India, amid growing concerns over U.S. companies shifting production outside the country.
Trump confirmed earlier this year that he had pressed Apple CEO Tim Cook to keep production inside the U.S.
“I said to Tim, ‘We treated you really good. We put up with all your plants in China. Now it’s time to build with us. We’re not interested in you building in India — they can take care of themselves,’” Trump said in March.
Apple has been looking to move up to 25% of its global iPhone production to India to reduce dependence on China.
From Friendship to Friction
The move to penalise India comes despite Trump’s historically warm relationship with Prime Minister Modi, which included a massive joint rally in Ahmedabad in 2020.
Vice President Vance had travelled to India in April and said the two countries had outlined a framework for a major trade deal. That effort now appears to be in jeopardy.
India has yet to respond officially, but the announcement is likely to trigger diplomatic friction, particularly as New Delhi has consistently defended its ties with Russia based on national interest and strategic autonomy.
India remains heavily reliant on Russian defence imports, including fighter jets and missile systems, and has steadily increased its purchases of discounted Russian oil since the start of the war in Ukraine.
Wider Implications
The escalation marks a shift in the Trump administration’s approach to global trade, using tariffs not only as an economic tool but also as a foreign policy lever to isolate Russia.
It also comes as the clock ticks down to 1 August, when the U.S. is set to impose reciprocal tariffs on multiple countries that have not aligned with its new trade position.
With geopolitical tensions rising, analysts say the tariff could deal a significant blow to India-U.S. economic relations — and may be the first of many such measures as Washington reshapes its global alliances.
