Donald Trump announces 25 pc tariffs with penalty on India from Aug 1
The announcement was made on Truth Social, his own social media platform. Trump said the decision also comes with a penalty on India for buying military equipment and energy from Russia.
He claimed that India's tariffs are among the highest in the world and that the country also has "the most strenuous and obnoxious non-monetary trade barriers" compared to any other nation.
"Remember, while India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high," Trump said.
He also mentioned that the US has a massive trade deficit with India.
The announcement follows months of talks between the two countries, but a mini or interim trade deal has remained out of reach.
The US President also criticised India's continued purchases of Russian weapons and energy, especially during the ongoing war in Ukraine.
He said India has always bought the majority of its military supplies from Russia and is one of the largest buyers of Russian energy, along with China.
"At a time when everyone wants Russia to stop the killing in Ukraine, these things are not good," Trump added.
"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!" he wrote.
Last week, Finance Minister Nirmala Sitharaman said trade talks with the US are progressing well. Her comment came ahead of Trump's country-specific tariffs scheduled to take effect from August 1.
India last signed a free trade agreement (FTA) with the UK. Commerce and Industry Minister Piyush Goyal hailed the India-UK free FTA called it as a 'game-changing' deal that provides immense opportunities and benefits to farmers, businessmen, MSME sectors, young professionals and fishermen.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
17 minutes ago
- Business Standard
Pakistan to import US crude for first time after Trump trade deal
Pakistan's top refiner will receive its first-ever US crude shipment in October, following a new Trump-brokered energy pact aimed at deepening trade and geopolitical ties New Delhi Pakistan's largest refiner Cnergyico will import one million barrels of crude oil from Vitol in October, the company's vice-chairman Usama Qureshi said on Friday. This marks the country's first-ever purchase of US-origin oil, following a landmark trade agreement. Why it matters This is the first time Pakistan will import crude oil from the United States. The shift follows a strategic trade agreement amid rising US tariffs and shifting alliances in the region. State of play Pakistan's largest refiner Cnergyico will import one million barrels of crude oil from Vitol in October, the company's vice-chairman Usama Qureshi confirmed. The deal marks a first for US-origin crude entering the country. Zoom in: West Texas crude to arrive in Karachi The shipment of West Texas Intermediate light crude will be loaded from Houston this month and is expected to arrive in the second half of October. 'This is a test spot cargo under our umbrella term agreement with Vitol. If it is commercially viable and available, we could import at least one cargo per month,' Qureshi said, adding the cargo is not for resale. Between the lines: Trump's energy diplomacy deepens ties The import decision follows President Donald Trump' s announcement of a new US–Pakistan energy initiative. Trump claimed Pakistan had 'massive' oil reserves and even suggested it could eventually export oil to India. His comments came amid heightened tensions with India, where Trump has imposed 25 per cent tariffs and criticised India's crude purchases from Russia. What they're saying Qureshi said the deal followed several rounds of talks starting in April, shortly after Trump threatened to impose 29 per cent tariffs on Pakistani imports. Pakistan later welcomed the agreement, citing tariff relief and greater investment prospects, though details on revised tariff levels remain unclear. Context: A diplomatic shift amid regional tensions A close ally of China, Pakistan has moved closer to the Trump administration after facing tariff threats. Islamabad credits the US for helping ease tensions with India and has even nominated Trump for the Nobel Peace Prize. Numbers game Oil is Pakistan's biggest import item, accounting for nearly 20 per cent of its total import bill. Oil imports (FY25): 11.3 billion dollars Cnergyico's processing capacity: 156,000 barrels per day It also operates the country's only single-point mooring terminal near Karachi, enabling it to handle large tankers — an edge over other refiners The bottom line The US–Pakistan oil deal marks a diplomatic and economic pivot, giving Islamabad an energy alternative while strengthening ties with Washington at a time of growing strain with India.
Economic Times
17 minutes ago
- Economic Times
Gold prices are up; here's what Trump's tariffs and Fed decisions have to do with it
Gold prices saw a rise due to US trade tensions. President Trump imposed tariffs on goods from South Korea, India, and Brazil. This move created market uncertainty. Investors are turning to gold as a safe haven. The US economy grew, but the Federal Reserve is cautious. Tariffs may increase prices on imported goods. Investment markets could remain unstable. When global trade is uncertain, investors often feel anxious. During these times of unease, many turn to gold, a timeless "safe haven" for protecting wealth. Tired of too many ads? Remove Ads Why does gold matter here? Tired of too many ads? Remove Ads But isn't the US economy doing well? So, what does it mean for you? The new tariffs may raise the prices of some imported goods. Depending on where they come from, that could impact electronics, cars, or household items. Investment markets may stay shaky, especially if trade tensions continue. That could affect your retirement fund or stock investments. Gold just made a small comeback, and the reason may have something to do with rising tensions between the US and its global trading partners. On Thursday, July 31, the price of gold climbed to $3,308.83 per ounce, bouncing back after hitting a one-month silver dipped slightly, both metals have had a strong year, with gold up more than 35 per cent. That's a big deal for investors and for anyone watching the Trump announced a fresh wave of tariffs, basically extra taxes, on goods imported from several countries, including South Korea, India, and Brazil. These changes include a 15 per cent tariff on South Korean products, a 25 per cent tariff on Indian goods, and new rules for items like cheap imports also lost their previous exemptions. These moves shook up markets overnight, especially the copper market, which saw prices fall by nearly 20 per global trade becomes uncertain, investors get nervous. And when people are worried about where to put their money safely, many turn to gold, a classic "safe haven" during turbulent time is no different. Trump's tariff announcement sparked anxiety about the future of international trade and its impact on the economy. As a result, people started buying gold to protect their wealth, pushing its price US economy grew by 3 per cent in the second quarter, which was better than expected. Despite that, the Federal Reserve , America's central bank, has decided not to lower interest rates for now, saying it wants to see more data before making any changes. Inflation is also ticking up slightly, which adds to the becomes more attractive to investors, which usually signals a more cautious outlook for the global economy.
Mint
17 minutes ago
- Mint
What a drop! Indians shun Turkey in June
Indian tourists shunned Turkey in droves this June, the month following Operation Sindoor, during which the Indian Armed Forces carried out cross-border strikes in Pakistan, in response to the terrorist attack on civilians in Pahalgam in April, amid growing online campaigns to boycott Turkey over its support for Islamabad. The campaign urged Indians to boycott travelling to Turkey, with some online travel agencies (OTAs) halting bookings to the country and others issuing advisories against visiting. The last such social media-led boycott was against the Maldives, which proved highly effective – Indian travel to the island nation dropped significantly after the diplomatic row and has remained low since. In his speech in the Lok Sabha, the Prime Minister referred to three countries that did not support India during Operation Sindoor. While he did not name them, it is widely understood that the countries in question were China, Turkey, and Azerbaijan. According to data released by Turkey's Ministry of Culture and Tourism, 24,250 Indian tourists visited the country in June 2025, a 36 per cent drop compared to June 2024, when 38,307 Indians had travelled to Turkey. This decline has also impacted the cumulative figures for the first half of the year. Between January and June 2025, 1,39,215 Indians visited Turkey, compared to 1,64,373 during the same period in 2024, a year-on-year drop of 15 per cent. The decline began in May 2025, in the immediate aftermath of Operation Sindoor. That month, only 31,659 Indians visited Turkey, compared to 41,544 in May 2024, a 24 per cent drop. June figures dropped further below May's. In all of 2024, 3,30,985 Indians visited Turkey, a 20 per cent increase over 2023. Indians comprise a minuscule 0.6 per cent of total foreign arrivals in Turkey, a market largely driven by travellers from Europe and Russia. However, the Indian market has been steadily growing in recent years, with IndiGo playing a key role in that growth. For years, Turkish Airlines was the only carrier connecting the two countries, although several options existed via the Middle East. That changed in 2018–19 when IndiGo launched direct flights, which significantly boosted traffic between India and Turkey. Post-pandemic, IndiGo operated wide-body aircraft leased from Turkish Airlines, but it cannot extend the lease beyond 31 August. While no official reason has been given, the move appears to be linked to Turkey's vocal support for Pakistan during Operation Sindoor and its stance on Kashmir. Turkish Airlines has been keen to expand operations in India but has struggled due to the lack of progress on revising the Bilateral Air Services Agreement (BASA). Pertinently, ground handling agency Celebi has had its licence suspended overnight. The staff has been accommodated across other agencies without impacting operations at airports where it operates. Celebi India was majority owned by Celebi, a Turkish company. The declining traffic to Istanbul is likely a key reason why IndiGo may choose not to deploy its damp-leased aircraft from Norse Atlantic to the Turkish city. Instead, the airline is expected to prioritise its deployment on European routes, while continuing Istanbul operations using narrow-body aircraft with a technical stop. As IndiGo deleverages its dependence on Turkish Airlines, through partnerships with KLM, Air France, and Virgin Atlantic, it may reconsider its ties with the Turkish carrier altogether, especially if traffic continues to decline due to public sentiment. Both IndiGo and the Air India group currently have maintenance agreements with Turkish Technic, and aircraft are still sent to Turkey for servicing. As of now, the flight-tracking website Flightradar24 shows two Air India Boeing 777s and one IndiGo A321neo at Istanbul Atatürk Airport, which houses Turkish Technic's base. IndiGo has already announced a new agreement with Lufthansa Technik for redelivery checks, services that were previously handled by Turkish Technic. Meanwhile, Air India's CEO has indicated the airline is exploring alternative maintenance providers, although no formal announcements have been made yet.
