In a sharp escalation of trade tensions, U.S. President Donald Trump announced via his official Truth Social account that the United States will impose a penalty tariff on Indian imports, citing the country’s continued purchase of oil and weapons from Russia.
The post, made late Tuesday, stated:
“India continues to buy huge amounts of oil and military equipment from Russia. This must stop. Starting August 1, a 25% tariff plus an additional penalty will apply to all Indian goods entering the U.S.”
The announcement signals a major shift in U.S.-India trade relations and comes amid renewed scrutiny of nations maintaining strong economic ties with Moscow. Trump’s move specifically targets India’s defense and energy cooperation with Russia—areas in which New Delhi has long maintained strategic autonomy.
According to sources familiar with the development, the “penalty tariff” will be applied in addition to existing duties, potentially impacting billions in Indian exports to the U.S., including textiles, pharmaceuticals, and IT services.
While there has been no official response from the Indian government so far, trade and diplomatic circles in New Delhi are reportedly preparing for high-level consultations. Experts warn the measure could lead to retaliatory actions or a slowdown in bilateral negotiations.
The post from Trump’s Truth Social account has already triggered mixed reactions in global markets and is expected to dominate the agenda in upcoming U.S.-India dialogues.
