Trump Slams India With 25% Tariff Bomb—Plus a ’Penalty’ Kickoff August 1

Trade tensions ignite as the former US president takes aim at India’s economy—just days before the new measures hit.

Here’s what’s at stake:

The 25% hammer drop

Trump’s latest tariff move isn’t just a tax—it’s a geopolitical power play. India’s export sector braces for impact as Washington tightens the screws.

The ‘penalty’ wildcard

Details are scarce, but the threat of additional sanctions looms. Analysts suspect this could target tech or pharmaceuticals—sectors where India dominates.

Market tremors ahead

Traders scramble to hedge positions as the August 1 deadline nears. One thing’s certain: volatility is back on the menu—just when you thought inflation was the only problem.

Funny how ‘America First’ somehow always means ‘Emerging Markets Last.’

Key Takeaways

• President Donald Trump threatened to impose a 25% tariff on Indian products starting Friday, plus an unspecified "penalty" for buying weapons and energy from Russia.
  
• India was previously slated for a 26% tariff under Trump's "Liberation Day" tariffs.
  
• India is one of dozens of countries targeted by "reciprocal" tariffs set to take effect Friday.
  

President Donald TRUMP ratcheted his trade talk about India, just ahead of the latest tariff deadline.

India is one of dozens of countries Trump has targeted for "reciprocal" import taxes set to go into effect Aug. 1. The U.S. will charge a 25% tariff on Indian imports starting on that date, Trump said in a social media post Wednesday morning.

"Remember, 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," Trump posted. "Also, 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!"

India has sought a trade agreement with the WHITE House ever since April, when Trump announced his sweeping "Liberation Day" tariffs against India and other trading partners with whom the U.S. has a trade deficit. India currently has a 10% tariff, which had been set to go up to 26% under the "Liberation Day" scheme, which has been delayed several times.

Trump also said India would pay "a penalty" for buying weapons and energy from Russia, but did not specify what that would be.

India is currently a relatively minor trading partner of the U.S. despite being the world's most populous country. The U.S. bought $73.3 billion worth of imports from India in 2021, mainly stone, glass, metal and pearls, making up 2.6% of total imports according to the Department of Commerce.