by Amit Chopra
In a major policy announcement US President Donald Trump declared that starting August 1, Indian goods entering the US will face a steep 25% import duty. In addition to this tariff, India will also be penalized for continuing to purchase arms and energy supplies from Russia, a move Trump criticised sharply given the ongoing conflict in Ukraine.
During a message posted on his social media platform Truth Social, Trump accused India of maintaining some of the world’s toughest trade barriers and blamed the country for favoring Russian suppliers in key sectors like defense and energy. He emphasized that these new trade measures would go into effect without delay, reinforcing his “America First” approach.
US Commerce Secretary Howard Lutnick confirmed the timeline, stating that the new tariff regime would begin on August 1, 2025, with no room for postponements. “No extensions, no exceptions. The clock starts August 1. Tariffs will be collected by customs as scheduled,” Lutnick affirmed.
Trade Deal Still in Limbo
While both nations had previously expressed intent to formalize a trade pact during Prime Minister Narendra Modi’s US visit, negotiations have stalled. Five rounds of talks have been held, with a sixth planned for the end of August. Key sticking points reportedly include India’s unwillingness to liberalize its agriculture and dairy sectors.
Indian officials believe the new tariffs may be temporary and subject to rollback if the broader trade deal is finalized by fall. Nonetheless, Trump’s latest move puts added pressure on India to resolve long-pending trade differences with the US.
