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President Donald Trump announced newly implemented tariffs against India on Wednesday.

A 25 percent tariff will apply to all goods from India, along with an extra import tax because of India’s purchasing of Russian oil.

“While India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country,” Trump wrote on Truth Social on Wednesday morning.

Why It Matters

Trump has been levying tariffs against numerous nations, with negotiated trade terms applying to the European Union, Japan, the Philippines and Indonesia.

The administration has pushed for tariffs as a way to navigate the budget deficit amid income tax cuts and to boost domestic manufacturing jobs, but analysts have warned that American consumers will be the ones taking on the price hikes.

President Donald Trump gestures as he meets British Prime Minister Keir Starmer at Trump Turnberry golf club on July 28, 2025, in Turnberry, Scotland. President Donald Trump gestures as he meets British Prime Minister Keir Starmer at Trump Turnberry golf club on July 28, 2025, in Turnberry, Scotland. Andrew Harnik/Getty Images

What To Know

Trump said on Truth Social that since India buys a large amount of military equipment from Russia, India will face the 25 percent tariff and penalty.

“They have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!” Trump said Wednesday.

Trump India Tariffs: When Are They Being Rolled Out?

In his post on Truth Social, Trump said these tariffs would take effect August 1.

In the past several months, India and the U.S. have had trade negotiations, and it remains to be seen when the new tariff will impact prices for everyday American consumers.

“To be completely fair, no one knows, not even the president, when the tariffs will actually be rolled out, even though he has stated August 1, which could change as it has multiple times in the past. Speculating on the timing is a losing battle.” Kevin Thompson, the CEO of 9i Capital Group, told Newsweek. “What we do know is that his tariff policy has already put some pressure on countries forcing them to spend on their defense.”

What Does the U.S. Import From India?

The United States has a $45.8 billion negative trade imbalance with India, according to the Census Bureau. This means America largely imports more than it exports, skewing the larger trade relationship.

Primarily, the U.S. brings in a significant amount of pharmaceutical products and electrical components from India.

A full list of potentially impacted products include:

Pharmaceuticals (generic drugs and active pharmaceutical ingredients)

Stones and jewelry (diamonds, gold and silver)

Textiles/apparel (cotton, knit clothing, bed linen and towels)

Industrial and electrical machinery parts

Iron and steel pipes, tubes and construction materials

Auto parts

Spices

Tea

Rice

Recent estimates suggest that Americans buy up to $90 billion a year in imports from India.

What Does the U.S. Export to India?

The United States’ largest exports to India are crude oil and machinery, including agricultural and construction equipment.

What Consumers Should Know

With the tariffs announced, analysts are warning that drug prices could get steeper and technological complications could occur.

“Drug prices could be impacted as tariffs drive up costs, but the bigger concern is connectivity,” Thompson said. “The U.S. imports a large volume of telecom and electrical components used to power phone and internet networks. If costs rise, providers are likely to pass that through to consumers, which means higher internet and phone bills.”

What People Are Saying

Kevin Thompson, the CEO of 9i Capital Group, told Newsweek: “This hits rural and low-income communities the hardest and could slow broadband expansion and tech upgrades. Over the long term, higher costs in this category can ripple through the economy, adding inflationary pressure and increasing operating costs for businesses—ultimately another hit to consumers’ wallets.”

Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “This could have a massive effect on the prices Americans pay if these tariffs become a reality. The hope, as with other tariffs, is deals can be reached to minimize the effects on Americans.”

What Happens Next

American consumers are already facing economic uncertainty and higher prices on a variety of everyday products, and the newly announced tariffs could exacerbate the problem, experts are warning.

“A tariff rate of 25 percent on most if not all of those items would boost prices that are already hitting customers’ wallets hard due to inflationary pressures,” Beene said.