Trump hits India with 25pct tariff and 'penalty' over Russia ties

New Straits Times

30-07-2025

WASHINGTON: US President Donald Trump said Wednesday that imports from India will face 25 per cent tariffs, while also announcing an unspecified "penalty" over New Delhi's purchases of Russian weapons and energy.
The measures will kick in on Friday, Trump posted on his Truth Social platform, adding to a bevy of other tariff hikes – some up to 50 per cent – set to take effect the same day.
In a separate post, Trump said the August 1 deadline "stands strong, and will not be extended."
He had previously issued multiple delays to his so-called "reciprocal" tariffs since first announcing them in early April, while instituting an interim 10 per cent baseline.
The 25 per cent tariff on India would be marginally lower than the rate announced in April, but is higher than those of other Asian countries that have struck preliminary trade agreements with Washington.
India, the world's most populous country, was one of the first major economies to engage the Trump administration in broader trade talks.
But six months later, Trump's sweeping demands and India's reluctance to fully open its agricultural and other sectors have so far prevented New Delhi from sealing a deal.
"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 said Wednesday morning.
He added that India has "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."
In addition to the 25 per cent tariff, India will face "a penalty for the above," Trump said, without any specification.
Later Wednesday he told reporters that talks on the tariffs were ongoing and "we'll see what happens," but he did not elaborate on the penalty.
The measure comes as the 79-year-old Republican has signaled he intends to tighten US pressure on Moscow to halt fighting in Ukraine and negotiate a peace deal.
On Tuesday, Trump said he was giving Russian President Vladimir Putin 10 days – which would mean the end of next week – to change course in Ukraine or face new tariffs.
He had previously threatened to impose "secondary tariffs" that would target Russia's remaining trade partners – such as China and India – seeking to impede Moscow's ability to survive already sweeping Western sanctions.
Despite the tariff threat, New Delhi said it was committed to continuing negotiations on "a fair, balanced and mutually beneficial bilateral trade agreement."
Shortly after announcing the tariffs on New Delhi, Trump said he had struck a deal with India's archrival Pakistan to jointly develop its oil reserves.
"Who knows, maybe they'll be selling oil to India some day!" he posted on Truth Social.
Trump has set out to upend the global economy by trying to leverage US economic power to squeeze trading partners with tariffs and force foreign companies to move to the United States.
He has already announced deal outlines with five countries – Britain, Vietnam, Japan, Indonesia and the Philippines – as well as the one with the 27-nation EU.
US and Chinese officials held talks this week in Stockholm on extending a trade truce that has temporarily lowered tariffs from soaring triple-digits.
While no deal was announced at the meetings, both sides are eyeing an extension ahead of the August 12 deadline.
Meanwhile Trump announced 50 per cent tariffs on Brazil – in part to pressure the South American ally to shut down the trial of far-right former president Jair Bolsonaro on coup charges.
He has also instituted separate levies targeting specific sectors, including steel, copper and automobiles.