Trump Announces New 25% Tariffs on India, Cites Russia Ties and Trade Deficit

July 31, 2025 – WASHINGTON – U.S. President Donald Trump has announced a new 25% tariff on a broad range of imports from India, along with an unspecified “penalty,” effective August 1. The move comes as part of a larger push for what the administration calls “trade reciprocity” and is tied to ongoing trade negotiations, as well as India’s continued energy and military partnerships with Russia.

The announcement was made via a post on Truth Social, where President Trump criticized India for its “far too high” tariffs and “obnoxious non-monetary trade barriers.” He also pointed to India’s status as a major buyer of Russian oil and military equipment, a partnership he called “not good” given the international community’s stance on the conflict in Ukraine.

India’s Official Reaction

In New Delhi, the Ministry of Commerce and Industry responded by stating it is “studying the implications” of the announcement. In an official statement, the government emphasized its commitment to protecting and promoting the welfare of domestic businesses, including farmers, entrepreneurs, and MSMEs. The ministry reiterated that it will “take all steps necessary to secure our national interest” and remains committed to achieving a “fair, balanced, and mutually beneficial” trade agreement with the United States.

Industry experts and economists in India have expressed concern, noting that the new tariffs will significantly impact key export sectors, including textiles, gems and jewelry, and automotive parts. Some have called the move an “unfortunate development” that strains the strategic partnership between the two nations, though they remain hopeful that a trade deal will be finalized to make the tariffs a short-term issue.

Federal Court Challenges Presidential Authority

The new tariffs are being imposed as President Trump’s authority to use emergency powers for such actions is being challenged in a federal appeals court. The U.S. Court of Appeals for the Federal Circuit in Washington, D.C., is hearing oral arguments in a case appealing a lower court’s ruling. The Court of International Trade had previously found that the president exceeded his authority by using the International Emergency Economic Powers Act (IEEPA), a law historically used for economic sanctions, to impose tariffs based on trade deficits.

The legal challenge, brought by a coalition of U.S. businesses and states, argues that the U.S. Constitution grants Congress, not the president, the sole authority to impose tariffs. The administration’s defense is that the IEEPA provides for “extraordinary” authority to “regulate” trade in a crisis. A decision from the appeals court is expected in August, with the possibility of the case being fast-tracked to the Supreme Court. The outcome of this legal battle could have significant implications for the future of U.S. trade policy and the separation of powers.