US President Donald Trump announced on July 30, 2025, that India will face a 25 percent tariff on its exports to the US starting August 1, along with an additional unspecified penalty.
This decision escalates bilateral trade tensions between the two nations amid stalled efforts to finalize a comprehensive trade agreement. Trump cited India’s high tariffs, calling them among the highest globally, and its extensive purchases of military equipment and energy from Russia as reasons for the tariff and penalty imposition.
ट्रंप ने भारत पर 25% टैरिफ ठोक दिया, साथ ही पेनल्टी भी लगा दी. नरेंद्र मोदी की ‘दोस्ती’ का खामियाजा देश भुगत रहा है.
• मोदी ने ट्रंप का प्रचार किया
• लपक-लपककर गले मिले
• फोटो खिंचवाकर सोशल मीडिया में ट्रेंड करायाआखिर में ट्रंप ने भारत पर टैरिफ ठोक दिया. भारत की विदेश नीति… pic.twitter.com/n8jRpQLNQ6
— Congress (@INCIndia) July 30, 2025
Trump acknowledged India as a “friend” but criticized the country’s trade barriers and limited business volume with the US over the years. He highlighted India’s status as one of Russia’s largest buyers of energy and military hardware during the ongoing Ukraine war and implied that this contradicts the global call for Russia to cease hostilities.
The US has already imposed tariffs on other major trading partners, and this move signals a tough stance for countries that do not swiftly reach reciprocal trade agreements.
Politically, the reaction in India has been sharply divided. The Congress party vehemently criticized Prime Minister Narendra Modi’s government, blaming his close relationship with Trump and the 2019 “Howdy Modi” event for the tariff imposition.
Congress leaders urged Modi to take a firm stand and expressed that India’s foreign policy under his leadership has failed to protect national interests[query]. Senior Congress figures like Jairam Ramesh and Mallu Ravi demanded strong responses to what they perceive as insults and threats from the US President.
On the other hand, Bharatiya Janata Party (BJP) leaders called the tariff imposition “unfortunate” but urged patience and cautioned the public to await an official statement from the Indian government. BJP MPs noted that Trump often makes U-turns on his statements and expressed confidence that under Modi’s leadership India will mount a strong counter-strategy. They also emphasized awaiting government assessments before reacting publicly.
The tariff is expected to impact critical sectors of the Indian economy including electronics, automobiles, pharmaceuticals, textiles, and gems and jewellery that rely heavily on exports to the US. The Department of Commerce is said to be studying the implications, and negotiations with the US continue despite the looming tariff deadline.
In summary, the US’s 25 percent tariff and additional penalty on India beginning August 1 denote a significant spike in trade tensions. While Trump frames the tariffs as a corrective to India’s high tariffs and strategic ties with Russia, Indian political responses vary from strong condemnation to cautious optimism, reflecting the complexity of bilateral relations and economic interdependence.
