Trump announces 25 per cent tariffs on India as trade deal remains elusive

In a big development, United States President Donald Trump on Wednesday announced a 25 per cent tariff on India. These tariffs would kick in from August 1.

Posting on Truth Social, Trump said these tariffs are among other things a penalty on India for buying oil from Russia.

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“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. 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! (sic),” the US President said in a lengthy post.

Trump had earlier warned that India could face tariffs as high as 25 per cent if it fails to finalise a trade deal with the US.

Speaking to reporters aboard Air Force One on Tuesday, Trump said that while India has been a good friend, that country can’t be allowed to charge higher tariffs.

“India has been a good friend. But India has charged basically more tariffs than almost any other country over the years. But now I’m in charge. And you just can’t do that. I think the trade deals are working out very well. Hopefully for everybody, but for the United States, they’re very, very good,” the US President said.

His remarks came ahead of the August 1 deadline he has set for India to reach a trade agreement or face reciprocal tariffs.

Trump had earlier announced 27 per cent tariffs on Indian goods, but later paused them after the two countries began negotiations on a trade agreement.

Reports had stated that the negotiations had concluded, and the deal was now with the Trump administration for a final approval. However, when the US president was asked about it, he said the deal with India is not finalised.

Earlier on Sunday, Union Commerce Minister Piyush Goyal said that India negotiated the trade deal with the US from a position of strength.

“India today negotiates from a position of strength, a position of confidence. It is this very confidence that continuously encourages us to make good free trade agreements,” he said, adding, “Our discussions with the United States are progressing very well.”