New Delhi:
US President Donald Trump on Wednesday announced a 25% tariff on Indian goods, coupled with additional penalties linked to India’s purchase of Russian oil and military equipment. The announcement comes just two days before the August 1 reciprocal tariff deadline, heightening tensions between Washington and New Delhi.
Calling India “Russia’s largest buyer of energy, along with China,” Trump said the penalties would be imposed on top of the reciprocal tariffs. He also criticized India’s “far too high” tariffs on American goods, citing them as a key reason for the move.
The declaration followed weeks of uncertainty over the India-US trade agreement. A White House official and US economic advisor later said further details on the penalties would be disclosed at a later date.
A White House official and US economic advisor later clarified that details of the additional penalties would be revealed at a later date.
India’s Response
In a swift response, the Indian government said it was “studying the implications” of Trump’s announcement and reaffirmed its resolve to protect national interests.
“The Government will take all steps necessary to secure our national interest, as has been the case with other trade agreements, including the latest Comprehensive Economic and Trade Agreement with the UK,” it said.
The Ministry of Commerce & Industry added that India and the US had been engaged in “ongoing negotiations to conclude a fair, balanced, and mutually beneficial bilateral trade agreement.” It stressed that protecting the interests of “farmers, entrepreneurs, and MSMEs” remained a top priority.
Trump’s Criticism of India
Trump defended the tariffs in a post on Truth Social:
“Remember, while India is our friend, we have done relatively little business with them because their tariffs are far too high—among the highest in the world—and they impose the most strenuous and obnoxious non-monetary trade barriers of any country,” Trump posted on Truth Social.
He further criticized India’s defense and energy ties with Moscow.
“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!” Trump wrote.
The escalating exchange underscores growing strain between the two countries, even as trade talks continue behind closed doors. Analysts say Trump’s move could complicate ongoing negotiations and test India’s balancing act between its strategic ties with Russia and deepening economic engagement with the US.
