Chicago – July 31, 2025
President Donald Trump announced on Wednesday that the United States will impose a 25% tariff on goods from India, along with an extra tax due to India’s purchase of oil from Russia. This decision is part of a broader set of trade actions, including new rules concerning Brazil, copper, and shipments of goods under $800.
Additionally, there will be a reduced 15% tax on imports from South Korea, including its cars. These changes are set to take effect on Friday and are seen as a way for Trump to show off his skills in trade negotiations, though there are concerns that these taxes could hurt the economy and increase inflation.
Trump explained that while India is a close ally, its tariffs on U.S. products are too high. He also mentioned that India buys military equipment and oil from Russia, which supports Russia’s actions in Ukraine. Because of this, Trump plans to add a “penalty” tax starting Friday as part of his administration’s new tariff policies.
Despite the tariffs, Trump said that the U.S. and India are still negotiating their trade relationship. In response, the Indian government said it is studying the effects of these new tariffs and remains committed to reaching a fair and mutually beneficial trade agreement with the United States.
