Trump Calls India Badminton, Uses 25 Percent Tariff Starting August 1

JAKARTA - President Donald Trump said the United States would charge 25% of imported goods from India starting August 1.

Trump said India would also face fines on August 1, but did not specify the amount or what the fine was for.

"Even though India is our best friend, for years we have only been doing relatively little business with them because their rates are too high, including the highest in the world, and they have the toughest and most annoying non-moneter trade barriers compared to any country," Trump wrote in a post on Truth Social. reported by Reuters, Wednesday, July 30.

"They always buy most of their military equipment from Russia, and are buyers of Russia's largest ENERGY, along with China, when everyone wants Russia to STOP MURDER IN UKRAINE EVERYTHING IS NOT GOOD !," Trump wrote.

India's Ministry of Trade, which leads trade negotiations with the United States, did not immediately respond to a request for comment.

Trump's decision dashed hopes for a limited trade agreement between the two countries, which has been negotiated for several months.

US and Indian trade negotiators have held several rounds of discussions to resolve controversial issues, particularly on market access to American agricultural and dairy products.

Despite progress in some areas, Indian officials refused to open a domestic market for imports of cannabis, corn, rice, and genetic engineering soybeans, citing risks to the livelihoods of millions of Indian farmers.

The new rate is expected to have an impact on the export of Indian goods to the US, which is estimated to reach around $87 billion by 2024, including labor-intensive products such as garment, pharmaceuticals, gems and jewelry, as well as petrochemicals.

The United States currently has a trade deficit of $45.7 billion with India.

India is now joining a list of countries facing higher rates under Trump's "Freedom Day" trade policy, which aims to reshape US trade relations by demanding greater reciprocity.

The White House has previously warned India of its high average tariff almost 39% for agricultural products, with rates rising to 45% for vegetable oil and about 50% for apples and corn.

This setback comes despite Prime Minister Narendra Modi and Trump having previously committed to finalizing the first phase of the trade agreement in the fall of 2025 and expanding bilateral trade to $500 billion by 2030, up from $191 billion by 2024.

US manufacturing exports to India, worth around $42 billion by 2024, as well as energy exports such as liquefied natural gas, crude oil, and coal, could also face retaliatory measures if India chose to retaliate.

Indian officials have previously indicated they view the US as a major strategic partner, especially in offsetting China.

However, they emphasized the need to maintain policy space in agriculture, data governance, and state subsidies.