25% Tariff Shock: Trump Threatens India Over Trade and Russian Dealings
According to President Trump, the US will levy 25% tariffs on Indian imports “plus an unspecified penalty” for purchasing Russian weaponry and energy.
He stated that the measures would go into force on August 1st, the US deadline for a trade agreement, in a post on his Truth Social website. His “tariffs are far too high, among the highest in the world” against India, he said, were a friend.
Additionally, “when everyone wants Russia to STOP THE KILLING IN UKRAINE,” he criticized India’s acquisitions of Russian energy and military hardware.
“Concluding a fair, balanced and mutually beneficial bilateral trade agreement” was India’s stated commitment. The United States and India had a $45.8 billion (£26.1 billion) trade deficit last year.
Trump first proposed up to 27% taxes on Indian imports in April, but those plans were eventually shelved. India and other nations have till this Friday to either come to a trade agreement or risk higher tariffs.
Tariffs are levied as levies on items that are imported from other nations. Frequently criticizing India’s high tariffs, the US president has called it a “tariff king” and a “big abuser” of trade relations.
Earlier Tuesday, he stated, “But now I’m in charge, and you just can’t do that,”
The Indian government declared that it was researching the ramifications of Trump’s comments.
According to the statement, it “attaches the utmost importance to protecting and promoting the welfare” of Indian small companies, farmers, and entrepreneurs.
“The government will take all steps necessary to secure our national interest.”
Officials from both sides have been rushing to reach a deal since April, with some sounding optimistic and others measured.
“Our conversations with our Indian counterparts are still ongoing. Earlier this week, US Trade Representative Jamieson Greer stated, “We’ve always had very constructive discussions with them.”
Although he had previously stated that a deal with India might be “imminent,” he also noted that it was important to recognize that Delhi’s trade policy has been “protectionist for a very long time” and has been “premised on strongly protecting their domestic market.”
Greer went on to say that Trump has been concentrating on negotiating agreements that significantly expand US access to other markets.
Dairy and agriculture are two major areas of contention for both nations.
Washington has long advocated for increased access to India’s agricultural sector because it views it as a significant unexplored market. However, India has vigorously defended it, pointing to livelihoods, food security, and the interests of millions of small farmers.
Piyush Goyal, the Indian Commerce Minister, told CNBC last week that the country’s agriculture industry is delicate and that it will ensure that farmers’ interests are “well protected.”
Goyal also told news outlets that India is still “optimistic” about reaching an agreement with Washington in the near future.
He told Reuters that he believed India and the US could “conclude a very consequential partnership” and that the two countries were making “fantastic progress” in their negotiations.
With bilateral trade exceeding $190 billion in 2024, the US was India’s biggest trading partner until recently. The goal stated by Trump and Modi is to more than treble this amount to $500 billion.
Although India has already lowered tariffs on a number of products, including as motorbikes and bourbon whiskey, the US still has a $45 billion (£33 billion) trade gap with India, which Trump is eager to close.
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Disclaimer: This article is based on publicly available statements, media reports, and political commentary regarding former U.S. President Donald Trump’s recent remarks and proposed trade measures. The information presented reflects the situation as reported at the time of publication and may be subject to change. Storify News does not endorse any political position or policy and is not responsible for the accuracy of claims made by third-party sources. Readers are advised to seek official government releases and expert analysis for complete context and updates.
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