US President Donald Trump listens while Indian Prime Minister Narendra Modi speaks during a joint press conference in the east house in the White House on February 13, 2025 in Washington, DC.
Alex Wong | Getty Images News | Getty images
President Donald Trump said on Wednesday that India will pay a price of 25% from August 1, in addition to a “penalty” for what he considers unfair trade policies and for the purchase of military equipment and energy by India.
The 25% rate rate is slightly lower than it imposed on India on the “Liberation Day”, when it announced a rate of 26% on the key trade partner.
“Remember, while India is our friend, over the years we have done relatively little with them because their prices are far too high, among the highest in the world, and they have the most intense and odious non-monetary barriers of all countries,” wrote Trump on Truth Social.
“In addition, they have always bought a large majority of their military equipment from Russia, and are the biggest energy buyer in Russia, as well as China, at a time when everyone wants Russia to stop murder in Ukraine – everything is not good!” He continued.
“India will therefore pay a 25%rate, plus a penalty for the above, from August first,” he said.
The White House did not immediately respond to the request for CNBC comments on the additional penalty.
