US President Donald Trump has announced fresh 25% tariffs on goods imported from India, alongside an unspecified penalty, citing Delhi’s continued purchase of Russian military equipment and energy. The measures, set to take effect from August 1, follow the expiration of a US deadline for a trade agreement between both nations.
In a post on his social media platform, Truth Social, Trump said, “India is a friend, but its tariffs are far too high, among the highest in the world.” He added that the country’s ongoing business with Russia defied global calls for an end to the war in Ukraine. “Everyone wants Russia to STOP THE KILLING IN UKRAINE,” Trump wrote.
There has been no official response yet from the Indian government, which has been locked in months-long negotiations with the US over a possible trade deal. The US currently has a trade deficit of $45.8 billion with India, a figure Trump has repeatedly vowed to reduce.
Back in April, the Trump administration had proposed tariffs of up to 27% on Indian imports, but these were temporarily paused to allow room for negotiations. The new tariffs will apply unless an agreement is reached before the Friday deadline.
Trump has long criticised India’s protectionist trade policies, branding the country a “tariff king” and “a big abuser” of its trading relationship with Washington. “But now I’m in charge, and you just can’t do that,” he said on Tuesday.
US Trade Representative Jamieson Greer confirmed that talks were still ongoing. “We continue to speak with our Indian counterparts. We’ve always had very constructive discussions with them,” Greer said earlier this week. However, he noted that India’s trade approach has been “premised on strongly protecting their domestic market” and called it “protectionist for a very long time.”
Key areas of contention include agriculture and dairy. Washington has pushed for broader access to India’s farm sector, which it views as a massive untapped market. India, on its part, insists on safeguarding its millions of small-scale farmers and has cited food security concerns.
Last week, Indian Commerce Minister Piyush Goyal maintained that India remains “optimistic” about striking a deal. Speaking to CNBC, he described the agriculture sector as “sensitive” and assured that India would “make sure that farmers’ interests are well protected.”
In a separate interview with Reuters, Goyal expressed confidence in the direction of talks, saying, “We are making fantastic progress” and voicing hope that both sides could “conclude a very consequential partnership.”
Until recently, the United States was India’s largest trading partner, with bilateral trade reaching $190 billion in 2024. Trump and Indian Prime Minister Narendra Modi have previously pledged to grow that figure to $500 billion.
India has already made some concessions, slashing tariffs on selected US exports such as Bourbon whiskey and motorcycles. Still, the trade imbalance persists—something Trump appears determined to fix through renewed pressure.
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