India US Trade Deal: 25% + Penalty, Donald Trump Announces Tariff For India, Russian Oil, Arms Turn Roadblock ?

Former US President Donald Trump has once again brought India and the United States face-to-face, with the former raising the tension between the two largest economies in the world in an unexpected move, as it has the potential to redefine how these nations conduct their global trade. On a social media site, Trump posted that India would also start paying a 25 per cent tariff and a penalty as of August 1 due to historic trade deficits and India remaining allied to Russia in terms of defence and energy resources.

US President Donald Trump announces 25% tariffs on India starting August 1st.

Posts, "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… pic.twitter.com/eqVj981lGD

— ANI (@ANI) July 30, 2025

Trump’s Tariff Tweet Sparks Backlash

Trump wrote a direct post commenting that:

• It is worth bearing in mind that India is a friend… with whom we have had comparatively little relations, because their tariffs have been very high…

• He attacked India and said it was erecting smelly anti-monetary trade barriers and stressed that it is still buying weapons and energy machines from Russia, though everyone in the world is telling Russia to stop its war in Ukraine.

India’s Strategic Balancing Act Under Fire

Strategic autonomy, especially in the field of defence and energy, has been a part of the global policy of India. Consequently, its ongoing acquisition of Russian S-400 missiles and oil has invited criticism in the Western world. Much of the blame for these decisions rests with a statement made by Trump himself when he said that India would pay a price because it refused to embrace the global stance presented by the US-led opposition.

Analysts feel that such action will complicate ongoing trade talks, and this action might compel New Delhi to rethink its diplomatic language before major summits.

What This Means for Bilateral Trade

Such a tariff action may spell major regression of the trade between India and the US, bearing in mind that the potential to win elections in the US may make Trump a key contestant in the next elections. India had recently sorted out some of the trade issues with the US, and this announcement could give rise to investor insecurity and policy uncertainty in some sectors such as pharmaceuticals, steel, and IT services.

Donald Trump Announces Tariff For India, Russian Oil, Arms Turn Roadblock?

US President Donald Trump announced a 25% tariff on Indian goods in a bid to escalate trade tensions, as India continues buying Russian oil and defence equipment. These ties, disfavoured by the US, are fast turning into major hurdles for the two sides to further improve bilateral trade.