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President Donald Trump has announced that he will slap a 25% tariff on imports from India starting August 1.
Some shit you should know before you read: Over the last few years, trade between the United States and India has been increasing as many US companies have sought to shift manufacturing from China to diversify supply chains and reduce geopolitical risk. In 2024, the US imported approximately $97 billion worth of goods from India, making India the ninth-largest source of US imports. Key imports from India include pharmaceuticals, textiles and garments, precious stones (like diamonds), machinery, and organic chemicals. In contrast, India imported about $51 billion worth of goods from the US, with top imports including aircraft, energy, medical equipment, and high-end machinery. This leaves the US with a bilateral trade deficit of roughly $46 billion.
What’s going on now: In a notable development, President Trump announced that the US would move forward with a 25% tariff on all imports from India beginning August 1, following the collapse of ongoing trade negotiations between the two nations. Trump made the announcement on Truth Social, stating, “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 added that India’s continued purchase of Russian military equipment and energy during the ongoing war in Ukraine is unacceptable, writing, “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!” In a follow-up post, Trump wrote, “I don’t care what India does with Russia. They can take their dead economies down together, for all I care.”
Trump also cited India’s membership in BRICS as another major issue, framing it as part of a bloc that undermines US strategic interests.
This all comes after months of negotiations between the US and India aimed at securing a bilateral trade agreement. According to US Treasury Secretary Scott Bessent, who spoke to CNBC, “The U.S. trade team was frustrated with India,” and the failure to reach a deal now leaves the future of the trade relationship “up to India.”
In response, India’s government expressed disappointment, but said it would act in the country’s best interest. The Ministry of Commerce added that the government was “studying” the implications of the tariff announcement and remains committed to “concluding a fair, balanced, and mutually beneficial bilateral trade agreement.”
