Trump Says India will Face 25% Tariff Plus Penalty for Trading with Russia

US President Donald Trump on 30 Jul said that India will pay a tariff of 25% beginning 1 Aug in addition to a penalty for what he views as unfair trade policies and for India’s purchase of military equipment and energy from Russia. In April 2025, Trump had said the tariff would be 26%. On 31 Jul, Trump wrote on Truth Social, ‘I don’t care what India does with Russia. They can take their dead economies down together, for all I care.’ This is a damning statement for India which claims it is on its way to becoming the world’s third largest economy. The point of contention is India’s trade in Russian oil during the Russia-Ukraine conflict since 24 Feb 2022. On 4 Aug, Trump said, 'India is not only buying massive amounts of Russian Oil...selling it on the Open Market for big profits.' In June 2022, at the Globsec 2022 conference India’s External Affairs Minister Subrahmanyam Jaishankar stoutly defended India’s position, as he did in Feb 2024. However, the defence was about benefitting from opportunity, but not rooted in either ideological clarity or a moral stance. On 4 Aug, India replied that the European Union and US also continue to trade with Europe. In the last few months, the talks between the US and India have not gone very well because India is resisting the US demand to open its agricultural and dairy markets. US Treasury Secretary Scott Bessent said the trade negotiation team was 'frustrated' with India. The final announcement will be on 7 Aug but the tariff will be effective from 31 Jul night. The tariffs will target sectors like auto components, steel, aluminum, smartphones, gems, and jewellery. The tariff has come as a huge setback to textile and hand tool industry in Panjab. Trump has brought down Pakistan's tariff from 29% to 19% and Bangladesh's to 20% from 35%. In addition, Trump announced the US will develop ‘massive’ oil reserves in Pakistan (earlier coverage).