Mohan Sinha
02 Aug 2025, 10:54 GMT+10
WASHINGTON, D.C.: U.S. President Donald Trump declared on July 30 that his administration will impose a 25 percent tariff on imports from India, along with an additional levy targeting the country's continued purchases of Russian oil.
Posting on his Truth Social platform, Trump acknowledged India as "a friend," but criticized what he called "excessively high" Indian tariffs on American exports.
In justifying the penalties, Trump pointed to India's ongoing defense and energy ties with Russia. He argued that India's purchases of Russian military hardware and crude oil were indirectly sustaining Moscow's war in Ukraine. "If we are serious about ending the war, we must stop enabling it," Trump said, announcing the start of what he called a "Russia-related penalty" tariff, set to take effect on August 1.
The move is part of a broader overhaul of Trump's trade policy, which includes renegotiated frameworks with the European Union, Japan, Indonesia, and the Philippines. Trump said those deals would open new markets for American products while giving the U.S. the authority to raise import taxes to support domestic industries and reduce the federal deficit, which has grown following his administration's income tax cuts.
Trump has long used tariffs as leverage to reshape global trade dynamics. While supporters argue the strategy has helped U.S. manufacturing, critics, including many economists, warn that rising import costs often hit American consumers and businesses, fueling inflation and dampening economic growth.
India, now the world's most populous nation, is seen as a key partner in Washington's long-term strategy to counterbalance China's global influence. However, India has maintained a neutral stance on the Ukraine war and has not joined Western sanctions against Russia. Its energy deals with Moscow, including purchases of discounted Russian crude, have drawn repeated concern from U.S. officials.
During a February meeting with Indian Prime Minister Narendra Modi, Trump expressed optimism about a budding energy partnership, claiming that India had agreed to buy American oil and liquefied natural gas. Yet on the flight back from a recent visit to Scotland, Trump told reporters that a comprehensive U.S.-India trade agreement remained unfinished. When asked whether a 25 percent tariff was imminent, he replied cryptically, "We're going to see."
With the new tariff measures set to launch in August, India now joins a growing list of U.S. trading partners facing heightened duties under Trump's revised trade regime — a campaign he says is aimed at protecting American jobs and correcting global imbalances.
Get a daily dose of New York Telegraph news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to New York Telegraph.
More InformationWASHINGTON, D.C.: U.S. President Donald Trump declared on July 30 that his administration will impose a 25 percent tariff on imports...
NEW YORK, New York - The latest jobs report, coupled with the disclosure of President Donald Trump's new tariffs rattled stock markets...
WASHINGTON, D.C.: President Donald Trump's tariff policy is now taking effect, and many companies are signaling who will absorb the...
PARIS/NEW YORK: Luxury brands are walking a tightrope in the U.S. after fresh tariffs threatened to squeeze profits at a time when...
BEIJING/SHANGHAI/NEW YORK: Nvidia has placed an order for 300,000 more H20 chips with contract manufacturer TSMC, two sources told...
NEW YORK, New York - U.S. and global stocks weakened on Thursday, led by declines in the tech sector. These market reactions—despite...
PARIS/NEW YORK: Luxury brands are walking a tightrope in the U.S. after fresh tariffs threatened to squeeze profits at a time when...
BEIJING/SHANGHAI/NEW YORK: Nvidia has placed an order for 300,000 more H20 chips with contract manufacturer TSMC, two sources told...
NEW YORK CITY, New York: Tea, a controversial dating app that allows women to anonymously review and comment on their experiences with...
NEW YORK CITY, New York: Marc Jacobs, once a crown jewel in LVMH's fashion portfolio, may soon find a new home. The French luxury conglomerate...
(Photo credit: Adam Cairns/Columbus Dispatch / USA TODAY NETWORK via Imagn Images) Paulinho scored on an acrobatic bicycle kick in...
(Photo credit: Sam Navarro-Imagn Images) With one out in the ninth, Xavier Edwards scored from third base on a swinging bunt by Agustin...
