US, India Still Negotiating, Says Trump After Imposing 25% Tariffs Plus Penalties
US President Donald Trump announced on Wednesday that the United States is still in trade negotiations with India, despite earlier threatening to impose a 25% tariff on Indian imports starting Friday.
Speaking to reporters at the White House later in the day, Trump left room for manoeuvre, suggesting talks were ongoing. “They have one of the highest tariffs in the world now. They’re willing to cut it very substantially,” he said. “We’re talking to India now—we’ll see what happens. You’ll know by the end of this week.”
The proposed 25% tariff would disproportionately affect India compared to other major US trading partners. Such a sharp hike risks derailing months of trade talks and straining ties with a country that Washington views as a crucial strategic ally and a counterweight to China in the region.
Earlier, in a post on his Truth Social platform, Trump hinted that the penalties were partly a response to India’s continued defence and energy ties with Russia. He also criticised India’s “obnoxious non-monetary trade barriers,” and accused the country of aligning itself with the BRICS group, a bloc of emerging economies Trump labelled “hostile” to American interests.
When pressed by reporters about the nature of the penalties, Trump pointed to both trade issues and geopolitical concerns. He expressed disapproval of India’s association with BRICS, particularly amid its deepening military and energy links with Russia.
Back in July, Trump had warned that nations siding with what he called "Anti-American policies" of BRICS could face an additional 10% import tariff. Wednesday's announcement appears to be the first step in implementing that threat, with other trade policy changes also unveiled by the White House on the same day.
The looming deadline, set for Friday, marks the cut-off for several countries to finalise reciprocal tariff agreements or risk facing punitive duties from Washington. India now finds itself racing against the clock.
For years, the United States has criticised India’s steep import duties, especially on agricultural goods. According to officials, India’s average applied tariffs are nearly 39% for agricultural products, with rates reaching as high as 45% on vegetable oils and around 50% on items like apples and corn.
“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 in his Truth Social post. “They’ve always bought the 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!”
In response, India’s government said it was closely reviewing the situation and reaffirmed its commitment to reaching a “fair, balanced, and mutually beneficial” trade deal with the US.
“India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective,” a government spokesperson stated.
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