President Donald Trump is not only going to be sticking to his tariffs against India but he is also set to penalize India with a penalty for its relationship with Russia.
Trump noted that New Delhi will have to pay an additional penalty due to its oil and military purchase from Russia in the face of the ongoing war in Ukraine.
Trump posted on Truth Social saying: “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,” he wrote.
READ: US-India trade deal to be struggling under looming tariffs deadline (July 4, 2025)
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!”
It looks like President Donald Trump will be sticking to his tariffs against India despite the supposed positive nature of negotiations during the India-U.S. trade deal. Just days ahead of the self-imposed August 1 deadline date before the tariffs come into effect, Trump stated that the India-U.S. trade deal was “working out very well” but hinted at a 20% to 25% tariff on New Delhi.
The Indian Union Minister for Commerce Piyush Goyal on Sunday stated that the trade discussion between India and the U.S. had been going “very well.”
“India today negotiates from a position of strength, a position of confidence. It is this very confidence that continuously encourages us to make good free trade agreements… Our discussions with the United States are progressing very well,” he said.
India and the United States are in the final stretch of trade negotiations ahead of a critical August 1, 2025 deadline. The U.S. had proposed a 26% reciprocal tariff on Indian exports in April, which was initially suspended for 90 days and later extended to August 1 to allow further talks. These tariffs are in addition to a baseline 10% duty on imports introduced earlier in the year. The primary U.S. demands include improved access to Indian markets in sectors such as dairy, automobiles, and industrial goods.
India, meanwhile, is seeking a full exemption from the reciprocal tariffs and continues to press for stronger access to the U.S. for its agricultural exports. Both countries have reaffirmed their commitment to doubling bilateral trade to $500 billion by 2030.
India has offered targeted tariff reductions on U.S. products like almonds, lentils, bourbon whiskey, and cranberries, but remains firm in protecting sensitive sectors such as dairy, rice, and wheat. Commerce Minister Piyush Goyal described progress as “fantastic,” yet key issues remain unresolved. On July 29, President Trump confirmed no final agreement had been reached and warned that tariffs of 20–25% may be imposed if talks break down. A U.S. trade delegation is expected to visit India in mid-August with both sides aiming to conclude a first-phase deal by early fall.
During a gaggle with the press interaction aboard Air Force One on Tuesday, Trump responded to a report suggesting that India might be preparing for 20 to 25% tariffs, stating that India had been imposing higher tariffs on the U.S. as compared to other countries.
“India has been a good friend. But India has charged basically more tariffs than almost any other country over the years. But now I’m in charge. And you just can’t do that. I think the trade deals are working out very well. Hopefully for everybody, but for the United States, they’re very, very good,” Trump said.
The India-U.S. trade negotiations are at a critical juncture as the August 1 deadline approaches. Despite positive talks and India’s willingness to reduce tariffs on select U.S. goods, key differences remain unresolved, especially on sensitive sectors like dairy and agriculture.
While tariffs remain a contentious issue, the negotiations underscore mutual recognition of the benefits of a robust trade relationship. Resolving differences could pave the way for broader agreements on intellectual property, digital trade, and investment protections.