The Trump administration on Wednesday imposed an additional 25% tariff on Indian imports, increasing some duties to 50%, in retaliation for New Delhi’s purchases of discounted Russian oil.
Indian Foreign Minister S. Jaishankar blasted the Trump administration for singling out India while sparing China and Europe, as both sides blamed failed trade talks on missteps and misjudgments.
“The government has no hope for any immediate relief or delay in U.S. tariffs,” a commerce ministry official told Reuters.
President Trump previously slammed the South Asian country’s “obnoxious” trade barriers and purchases of Russian military equipment, writing on Truth Social: “Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country.”
Trump added: “Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!”
The delayed tariff decision drove the rupee to a three-week low and cut Indian stock indexes by about 1%, the sharpest drop in three months. New Delhi estimates that $48.2 billion in exports—mainly gems, textiles, and food—will be impacted, with officials warning that U.S. orders could decline by up to 30%. India plans subsidies to ease the impact, but concedes diversifying to new markets will be difficult.
After a virtual meeting Tuesday, the U.S. State Department and India’s Foreign Ministry said both sides were eager to deepen and expand their bilateral ties. The statement said both sides agreed to build on progress under the U.S.-India COMPACT initiative for military, trade, and technology partnerships.
“Both sides looked forward to increasing defense cooperation, including signing a new ten-year Framework for the U.S.-India Major Defense Partnership, as well as advancing defense industrial, science, and technology cooperation; operational coordination; regional cooperation; and information-sharing,” the statement read.
1/ President Trump’s 50% tariffs on Indian imports are now in effect.
This isn’t just about India’s unfair trade—it’s about cutting off the financial lifeline India has extended to Putin’s war machine. 🧵 pic.twitter.com/bwLaL9dBTv
— Peter Navarro (@RealPNavarro) August 28, 2025
