Key Points
- US President Donald Trump announces 25% tariff on Indian goods, citing high tariffs and India’s partnership with Russia.
- Trump sharply criticizes both India and Russia, describing their economies as “dead” and dismissing concerns about their growing alignment.
- Trump warns ex-Russian President Medvedev after Medvedev threatens the US with “war” over Trump’s Russia ultimatum.
- Tensions rise after Trump’s ultimatum and penalty threats regarding India’s purchase of Russian oil and arms.
- Diplomatic and trade negotiations between US and India falter as both sides exchange strong statements.
New Delhi: In a dramatic escalation of US trade and diplomatic tensions, President Donald Trump on July 31, 2025, announced a sweeping 25% tariff on Indian imports, along with an additional, unspecified penalty over India’s ongoing purchase of Russian oil and military equipment. The tariffs are set to take effect on August 1, heightening uncertainty across global markets and souring relations with one of America’s key strategic partners.
Speaking on his Truth Social platform, Trump launched a scathing attack on both India and Russia:
“I don’t care what India does with Russia. They can take their dead economies down together, for all I care. We have done very little business with India. Their tariffs are too high, among the highest in the world. Likewise, Russia and the USA do almost no business together. Let’s keep it that way.”
Trump’s frustration over India’s deepening economic and defense ties with Moscow, especially as the Ukraine war continues, has prompted Washington to take a harder line. The US President declared that India’s high tariffs and preference for Russian oil and arms justified not only the 25% tariff but also new penalties targeting energy trade with Moscow.
US-India Trade Talks On The Brink
The newly imposed tariff significantly higher than for other major US trading partners follows months of faltering US-India trade negotiations. Trump insists India’s tariffs are “among the highest in the world,” and that New Delhi’s continued purchases from Russia undermine Western pressure on Moscow to end its war in Ukraine. Though talks reportedly remain underway, Indian officials expressed disappointment and warn of “serious consequences” for key export industries.
Trump Warns Medvedev After War Threat
Tensions spilled over to the Kremlin as well. Trump directed a pointed warning to former Russian President and current Deputy Security Council chair Dmitry Medvedev, calling him a “failed former president” and cautioning him to “watch his words” and not “enter very dangerous territory”.
Medvedev had earlier derided Trump’s 10-day ultimatum for Russian action in Ukraine, publicly stating on X:
“Each new ultimatum is a threat and a step towards war. Not between Russia and Ukraine, but with (Trump’s) own country. Russia isn’t Israel or even Iran.”
High Stakes, Uncertain Future
Trump’s latest moves have triggered intense diplomatic backlash and concern among business leaders, who warn that the 25% tariff will make Indian exports to the US significantly less competitive. Indian government officials stress their commitment to fair trade and have called for a return to dialogue, even as opposition leaders criticize the escalation as damaging to India’s interests. Meanwhile, Trump’s rhetoric signals a new phase of “America First” assertiveness that could reshape global alliances.
This showdown underlines how geopolitical rifts over energy, defense, and trade are colliding in a multipolar world, with Trump putting both friend and foe on notice.
