India-US trade deal: Donald Trump imposes 25% tariffs on India
NEW DELHI: President Donald Trump on Wednesday announced a 25% tariff on imports from India, effective August 1. In a post on Truth Social, Trump stated that the country maintains "some of the highest tariffs in the world" and "non-monetary trade barriers" that he described as restrictive.
He also raised concerns over India's continued defense and energy purchases from Russia.
'India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August first,' Trump said in his post.
Top developments on Trump's imposition of
25% tariff on India
:
'While India is our friend ... '
Trump announced a 25% tariff on India amid signs of some stalemate in the ongoing negotiations between the two countries on a bilateral trade deal.
Trump, announcing the tariff, listed India's high tariffs, its procurement of "vast majority" of military equipment and energy from Russia as well as "obnoxious non-monetary trade barriers".
India will be paying a "tariff of 25 per cent plus a penalty" from August 1, he said, adding "we have a massive trade deficit with India".
The US president, in a social media post, however, described India as a "friend". 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, he said.
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'Penalty' for Russian oil
Trump, announcing the tariff, listed India's procurement of "vast majority" of military equipment and energy from Russia as well as "obnoxious non-monetary trade barriers".
"Also, they have 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 — 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 said.
Trump's remarks on India come a day after he issued a 10-day ultimatum to Russia to agree to a ceasefire in Ukraine. As part of this push, Trump has threatened secondary sanctions on countries that continue to buy Russian oil and gas.
The proposed penalties are part of broader US efforts to isolate Russia economically and discourage countries from engaging in energy trade that could be seen as undermining international sanctions.
What next for India-US trade talks?
The United States and US are engaged in high-level diplomatic talks to finalise a bilateral trade agreement.
However recent weeks saw a stall in negotiations, with disagreements emerging around agriculture and market access. Trump, who had earlier hinted at a 'very big' trade deal with India, shifted tone and said tariffs between 20% and 25% were under consideration.
Despite the new levies, Indian officials are expected to continue pursuing trade negotiations with the US.
The two countries had finalised a framework for a bilateral pact in April following a meeting between US Vice President JD Vance and PM Modi in New Delhi. The US officials are expected to visit India later in August to finalise the deal.
The United States remains India's largest trading partner, with bilateral trade amounting to $127.9 billion in 2024.
'India paying price for Modi's friendship': Congress
Soon after Trump's announcement, Congress lashed out at the Centre saying the "country is now bearing the cost of Narendra Modi's 'friendship'".
"Trump slapped a 25% tariff on India, along with a penalty. The country is now bearing the cost of Narendra Modi's 'friendship'. Modi campaigned for Trump, hugged him eagerly, posed for photos, and made it trend on social media. In the end, Trump still imposed tariffs on India. India's foreign policy has completely failed," Congress said on X.
"President Trump has slapped a tariff of 25% plus penalty on imports from India. All that taarif between him and Howdy Modi has meant little," Jairam Ramesh said.
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