US President Donald Trump said he would impose a 25% tariff on India from August 1 and hinted that additional penalties would be imposed on India's energy purchases from Russia. Trump posted on Truth Social on Wednesday that India's tariffs "are among the highest in the world and have the strictest and most objectionable non-tariff trade barriers of any country."
"In addition, they have been purchasing the vast majority of their military equipment from Russia and have become one of the largest buyers of Russian energy," he added. "As a result, India will pay 25% tariffs from August 1, plus penalties for the above actions."
The Trump administration is scheduled to impose new tariffs on dozens of trading partners on August 1. The US leader's latest comments dashed India's hopes of receiving more favorable treatment than other countries in the region. New Delhi was one of the first countries to hold talks with Washington after Indian Prime Minister Narendra Modi visited the White House in February.
In response to Trump's latest statement, an Indian official said that New Delhi is still in contact with the United States to ensure a mutually beneficial trade agreement. Media reported earlier that Indian officials had said they would continue negotiations with the United States and strive to reach a bilateral trade agreement before the autumn.
The United States is India's largest trading partner and main export market, and the bilateral trade volume between the two countries in 2024 will reach US$128 billion. During Trump's first term, New Delhi tried and failed to reach a limited trade deal with Washington.
This time Trump announced a 25% tariff on India, which exceeds Vietnam's 20%, Indonesia's 19% and Japan's 15%, putting India at a competitive disadvantage.