India-US Trade Deal: In a sharp escalation of trade rhetoric, US President Donald Trump on Wednesday announced a 25 per cent tariff on Indian goods, effective August 1, citing high tariffs, non-monetary trade barriers, and India’s ties with Russia.
The announcement was made via a post on Trump’s social media platform, Truth Social, where he said the United States has done “relatively little business” with India over the years due to what he termed as excessive tariffs and trade restrictions.
“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 wrote.
Also Read:India-US Trade Deal Likely to Miss August 1 Deadline: More negotiations needed; no compromise on national interest, say sources
US slams India’s Russian purchases
The US president further criticised India’s continued purchases of energy and military equipment from Russia, linking it to the ongoing war in Ukraine.
“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!”
In a separate post, Trump pointed to an imbalanced trade relationship. “The US has a massive trade deficit with India,” he stated.
The decision follows a period of speculation over the exact tariff rate. On Tuesday, while speaking aboard Air Force One, Trump had hinted at possible tariffs between 20–25 per cent, but said that “nothing had been finalised.”
“India has been a good friend, but India has charged basically more tariffs than almost any other country… You just can’t do that,” he said.
Also Read:Trump’s BRICS barb rattles India-US trade deal hopes as new tariff wave rolls out
US warns India of unspecified penalties
Trump remarked that India, the world’s fifth-largest economy, would also face an unspecified penalty starting August 1, though he did not disclose the exact nature or amount of the measure.
Earlier, senior US Senator and close Trump ally Lindsey Graham issued a stark warning to India, China, and Brazil over their continued trade with Russia. Speaking during a live television interview, Graham cautioned that if these countries do not halt their oil purchases from Russia, they could be hit with significantly higher tariffs.
Graham revealed that the Trump administration is considering a 100 per cent tariff on oil-related imports. He stressed that India, China, and Brazil together account for nearly 80 per cent of Russia’s crude oil exports—arguing that their ongoing purchases are effectively funding President Vladimir Putin’s war in Ukraine.
Last week, Finance Minister Nirmala Sitharaman claimed that trade negotiations with the United States were making good progress, which came just days before the United States’s August 1 tariff deadline.
On the other hand, India recently signed a landmark Free Trade Agreement (FTA) with the United Kingdom. Describing it as a “game-changing” pact, Commerce and Industry Minister Piyush Goyal said the deal opens up significant opportunities for Indian farmers, MSMEs, entrepreneurs, young professionals, and fishermen.
