 "Trump announces 25% tariff on 'friend' India starting August 1")
US President Donald Trump on Wednesday announced that a 25% tariff on imports from India will take effect beginning August 1, citing what he described as unfair trade practices and India’s continued ties with Russia.
In a statement posted on Truth Social, Trump acknowledged India as a “friend” but criticised the country’s high tariffs and stringent non-monetary trade barriers, calling them “among the highest in the world” and “obnoxious.”
“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 posted on X.
“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!” he added.
Trump said that, in addition to the 25% tariff, India would face a penalty for what he described as “unfair” trade behaviour and continued support of Russia amid its war in Ukraine.
The announcement comes as India maintains a neutral stance on the Ukraine conflict and continues to engage in defence and energy trade with Moscow, despite Western pressure to reduce ties with Russia.
India-US trade deal yet to be finalised
Despite initial announcements during Prime Minister Narendra Modi’s visit to the United States about pursuing a bilateral trade agreement, India and the US have yet to finalise even an interim deal.
Impact Shorts
More ShortsSo far, five rounds of negotiations have been held between officials from both sides, with a sixth round scheduled for the end of August, when a US delegation is expected to visit India.
On Tuesday, President Trump suggested that India could face tariffs ranging from 20% to 25% due to the lack of a finalised trade agreement.
According to a Reuters report, Indian government officials believe any US tariffs imposed starting August 1 are likely to be temporary, as negotiations to reach a comprehensive trade pact are still ongoing and could be concluded by the fall.
Trump has consistently pressed India to further open its markets to American goods.
However, key sticking points remain, particularly around access to India’s agriculture and dairy sectors. Indian officials have maintained a firm stance, refusing to open these sectors to US exports.
With inputs from agencies
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