Tariff rate on India to rise to 25% by August, Trump says

U.S. tariff rates on Indian goods are set to rise to 25% by Aug., President Donald Trump said in a Wednesday social media post. The government has levied a 10% tariff on Indian imports since April. India was the United States’ tenth-largest trading partner in 2024, according to the Census Bureau.

The United States could also raise its tariffs on other countries by the start of next month, when the president’s extended deadline for the imposition of heavy reciprocal tariffs takes effect. Trump on Wednesday said the deadline wouldn’t be extended again.

Why is Trump raising the tariff on India? The president gave two reasons for the move:

• India has high import tariffs and trade barriers, he said. His April proclamation of reciprocal tariffs included information on several specific rates, including India’s 70% import tariff on U.S. passenger vehicles and its 80% tariff on rice.

• India buys most of its military equipment and much of its energy from Russia. Trump said he would add an additional, unspecified trade penalty to the 25% tariff because India continued to support Russia financially during its war with Ukraine. Trump on Monday said he would use unspecified secondary measures to apply economic pressure on Russia.

How did India respond? The country’s Ministry of Commerce and Industry said its negotiators would continue discussions with the United States on a fair and mutually beneficial bilateral trade agreement. India was considering the implications of the raised rate and would secure its national interests, the ministry said, according to New Delhi TV.

Dig deeper: Read Christina Grube’s report on Trump’s proposed 12-day deadline for a Russia-Ukraine ceasefire.