President Donald Trump said Wednesday that India will pay a tariff of 25% beginning Aug. 1, in addition to a “penalty” for what he views as unfair trade policies and for India’s purchase of military equipment and energy from Russia.
The 25% tariff rate is modestly lower than what he imposed on India on “Liberation Day,” when he announced a 26% rate on the key trading partner.
But it’s still on the higher end of what Trump appeared to be considering for India. Trump on Tuesday said that he was considering a rate between 20% to 25%.
“Remember, 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.
