Following President Trump's announcement of a 25% tariff on Indian imports, India has affirmed its commitment to protecting its national interests and is currently reviewing the implications of this decision. The Indian government has stated that it will take all necessary steps to secure the interests of its farmers, entrepreneurs, and MSMEs (micro, small, and medium enterprises).
Trump's declaration, made on Tuesday, July 29, 2025, cited "obnoxious non-monetary trade barriers" as the reason for the increased tariffs, which are scheduled to take effect on August 1. In a post on Truth Social, Trump stated that India has the "highest tariffs in the world" and that the US has done "relatively little business with them because their tariffs are far too high". He also criticized India for maintaining "the most strenuous and obnoxious non-monetary Trade Barriers of any Country". Additionally, Trump's statement alluded to penalties beyond the 25% tariff, mentioning India's continued energy and military purchases from Russia as a contributing factor.
The Indian government has acknowledged Trump's statement on bilateral trade and is actively studying its implications. The Ministry of Commerce & Industry stated that India and the US have been engaged in negotiations to reach a fair, balanced, and mutually beneficial bilateral trade agreement. India has expressed its continued commitment to that objective.
The announcement comes shortly before a scheduled visit by a US trade delegation to New Delhi on August 25 for further trade negotiations. Some view Trump's announcement as a pressure tactic to secure favorable trade deals, similar to those negotiated with other key partners such as Japan, the UK, and the EU.
US-India trade is substantial, with approximately $129 billion in goods exchanged in 2024. However, the United States Trade Representative reported a trade deficit of $45.7 billion with India.
The main opposition Congress party has urged Prime Minister Narendra Modi to stand up to President Trump regarding the tariffs.
