US President Donald Trump on Wednesday announced that the United States will impose a 25% tariff, along with penalties, on Indian imports starting August 1. The announcement was made on his social media platform, Truth Social.
Trump said the decision comes as a response to India’s continued purchase of military equipment and energy from Russia. He also criticised what he called India’s “extremely high tariffs” and “obnoxious non-monetary trade barriers,” claiming these factors have limited trade between the two countries for years.
“While India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high,” Trump stated, adding that the US suffers from a massive trade deficit with India.
The move follows months of discussions between Washington and New Delhi, but efforts to finalise a limited trade deal have so far been unsuccessful. Trump particularly highlighted India’s ongoing reliance on Russian weapons and energy supplies despite the war in Ukraine. “At a time when everyone wants Russia to stop the killing in Ukraine, these things are not good,” he wrote, ending his post with “ATTENTION TO THIS MATTER. MAGA!”
Just last week, Finance Minister Nirmala Sitharaman said that trade talks with the US were progressing well, even as the new tariffs were scheduled to take effect on August 1.
India recently signed a landmark free trade agreement (FTA) with the UK, which Commerce and Industry Minister Piyush Goyal described as a “game-changing” pact expected to benefit farmers, small businesses, MSMEs, young professionals, and fishermen.
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