Two days before the US reciprocal tariff deadline, US President Donald Trump confirmed on Wednesday that India will be facing a 25% tariff on its exports, effective August 1, 2025, in the light of no trade deal finalisation between the two countries yet. "India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August 1st. Thank you for your attention to this matter," the two-time president said. In a post on his social media platform, Truth Social, Trump slammed India for its long-standing trade practices and foreign policy alignments, particularly its close ties with Russia. He said that the India will also be facing an additional penalty for weapons and oil imported from Russian. "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 wrote.— RapidResponse47 (@RapidResponse47) The Republican leader also went on to highlight India's continued military and energy partnerships with Russia, calling them incompatible with global efforts to isolate Moscow over the war in Ukraine."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!," he said.The US currently holds a $45.7 billion trade deficit with India, which has now been added to the list of countries targeted under Donald Trump’s “Liberation Day” tariff push for trade reciprocity. The White House has criticized India’s steep import duties—averaging 39% on agricultural goods and reaching 50% on items like apples and corn.This move comes despite earlier pledges by PM Modi and Trump to finalize a trade deal by late 2025 and grow bilateral trade to $500 billion by 2030. In 2024, trade stood at $191 billion, with US manufacturing and energy exports to India—valued at $42 billion—now vulnerable to retaliation.India-US trade pact talksTrump had earlier indicated some optimism around ongoing trade negotiations between Washington and New Delhi, calling the talks “promising” and suggesting the final outcome could be “very good” for the United States. Speaking to reporters aboard Air Force One, he reiterated his view that India's tariff regime has historically been unfair but noted, “I think the trade deals are working out very well. Hopefully for everybody, but for the United States, they're very, very good.”On the Indian side, officials have sought to downplay tensions, projecting confidence in the negotiation process. Union Commerce Minister Piyush Goyal recently said that discussions with the US were progressing productively and described India’s current approach to trade talks as being from “a position of strength.” Foreign Secretary Vikram Misri had added that bilateral engagement on a potential trade agreement is “underway” and following a consistent line of contact.The Indian rupee extended its decline for a third straight day on Wednesday amid escalating tariff threats, weakening by as much as 0.5% to 87.24 against the U.S. dollar. Meanwhile, the BSE Sensex erased early gains and hovered flat ahead of the official announcement.
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