Trump Slaps India with 25% Tariff Amid Russia Trade Dispute

- U.S. President Donald Trump announced sweeping 25% tariffs on Indian goods, effective August 1. - Additional penalties target India’s energy and military trade ties with Russia amid the Ukraine war. On July 30, 2025, U.S. President Donald Trump imposed a 25% tariff on all goods imported from India, effective August 1. On the same day, U.S. President Donald Trump said on his Truth Social platform, “India has far too high tariffs and strenuous and obnoxious non-monetary Trade Barriers.” He also cited India's energy and military purchases from Russia, claiming these actions fuel Moscow’s war in Ukraine. Additional unspecified penalties will also target these specific trade ties. In response, Indian officials reaffirmed their commitment to trade negotiations with Washington, expressing hope for a fair, balanced, and mutually beneficial trade agreement. While Indian representatives are still assessing the impact of the tariffs, they remain optimistic about finalizing a broader trade deal by the fall. Furthermore, the Indian government described the measures as temporary, emphasizing diplomacy as the primary way to resolve the dispute. The new tariffs will heavily affect several Indian export sectors, including gems, jewelry, and electronic goods. Although Indian officials noted that they have scaled back energy imports from Russia, military and other trade ties with Moscow persist. These tariffs align with Trump's broader U.S. trade strategies, which involve similar increases on imports from countries such as Brazil, Mexico, Canada, and South Korea. According to U.S. government data, India is the 10th largest trading partner of the United States, with bilateral trade totaling $129.2 billion in 2024. The Trump administration is pushing for greater access to Indian markets for American products, and the agriculture and dairy industries are key stumbling blocks in the ongoing trade discussions. Market sentiment remained steady despite the announcement. According to CoinMarketCap on July 30, Ethereum (ETH) was trading at $3,214 as of 18:00 UTC, reflecting a 2.3% increase in its 24-hour trading volume.