Trump Sets 25% Tariff, Penalties on India

US President Donald Trump has imposed a 25% tariff on all imports from India, effective August 1, 2025, and announced an unspecified penalty targeting India’s continued purchases of Russian oil and military equipment. Trump justified the measures by citing India's high tariffs on American goods, significant non-monetary trade barriers, and close economic ties with Russia, arguing these policies damage US producers and weaken efforts to isolate Moscow. India will face steeper penalties than other Asian trading partners like Indonesia, Vietnam, and the Philippines. Recent high-level US-India trade talks failed to produce an agreement before the tariff deadline. Indian officials have called the move 'unfortunate' and pledged to respond. Economists warn the tariffs could slow US economic growth and increase inflation by raising costs for businesses and consumers.