Daijiworld Media Network - Washington
Washington, Jul 30: Just a day before the August 1 deadline for finalising trade agreements with key partners, U.S. President Donald Trump has announced a 25% tariff on Indian goods, adding that there would also be an unspecified “penalty” for the country’s longstanding economic and defence policies.
In a statement posted to his platform Truth Social, Trump said India had “always done relatively little business” with the U.S. due to its own protectionist trade barriers, and criticised India’s close defence and energy ties with Russia, especially in the context of the ongoing Russia-Ukraine war.
“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.
While the exact nature of the additional “penalty” was not detailed, the announcement adds fresh uncertainty to already tense trade negotiations between the two countries.
Background to the tariff move
India and the U.S. have been negotiating a bilateral trade deal for several months, but have failed to reach a breakthrough. Trump, who has made trade protectionism a central theme of his economic policy, is reportedly dissatisfied with what he sees as limited U.S. access to Indian markets.
The new 25% tariff follows Trump’s earlier “Liberation Day Tariffs” announced in April, where:
• China was hit with a 104% tariff,
• Cambodia with 49%, and
• Vietnam with 46%.
India’s 25% tariff, while lower by comparison, reflects growing U.S. impatience with what Trump described as imbalanced economic relations and geopolitical misalignment.
What’s at stake
• India is the 9th largest trading partner of the U.S.
• The U.S. is India’s largest export destination.
• Talks have focused on issues like agricultural access, digital trade, tariffs on medical devices, and market access for U.S. dairy products.
As Trump returned to office in 2025, the move is likely aimed at reasserting his tough-on-trade image while pressuring key US allies to distance themselves from Russia.
The Indian government has not yet issued an official response.