New Delhi: US President Donald Trump on Wednesday announced 25% tariffs on goods imported from India “plus a penalty”, starting August 1.
India will have to pay the additional penalty – an unspecified over and above the 25% – for buying energy and arms from Russia.
“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 said in a post on Truth Social.
“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 per cent, plus a penalty for the above, starting on August 1…,” he added.
The 25% tariff rate announced for India is 1% less than the 26% declared by Trump in his April 2 ‘Liberation Day’ conference.
This announcement came hours after Prime Minister Narendra Modi’s detailed revelation in Lok Sabha on what actually happened when US Vice President J D Vance dialled him in the middle of Operation Sindoor. India has rubbished Trump’s claims of brokering any kind of peace with Pakistan. It also denied any link between Indo-US trade deal and cessation in hostilities between India and Pakistan.
Earlier in the day, the US President had warned of tariffs up to 25% on its exports to the United States if a bilateral trade deal is not finalised by August 1, while accusing India of maintaining disproportionately high tariff barriers against American goods. Trump has consistently urged India to liberalise its market for US products, but negotiations have stalled over agriculture and dairy sectors, where the latter has firmly resisted concessions.
India’s Response
The government has taken note of a statement by the US President on bilateral trade. The government is studying its implications.
“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. The government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs. 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.”