US President Donald Trump on Wednesday announced a 25 per cent tariff on India from August 1, citing New Delhi's oil and gas trade with Russia as the key reason.
Trump made the announcement on his Truth Social platform, saying, "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. 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%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST 1st. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!," he said.
Massive trade deficit with India: Trump
In a another post, Trump said the United States has a "massive trade deficit" with India, raising concerns about ongoing trade dynamics between the two countries.
His comments come alongside a warning from US Senator Lindsey Graham, who said Trump plans to impose severe tariffs on nations continuing to import oil from Russia. Graham specifically named India, China and Brazil, stating that these countries are collectively buying around 80 per cent of discounted Russian oil — which, according to him, sustains Vladimir Putin’s war effort. “President Trump is going to put a 100 per cent tariff on all those countries, punishing them for helping Putin,” Graham said.
NATO chief Mark Rutte also echoed similar concerns. In a strong message, he cautioned countries that continue to do business with Russia, hinting at potential 100 per cent tariffs and further sanctions. He singled out India, China and Brazil, urging them to halt trade with Russia.
India-US trade deal
These warnings come amid uncertainty over the future of the India-US trade agreement. There had been speculation around the tariff rate the US might impose on Indian goods, with Trump earlier hinting at a possible 20 to 25 per cent tariff. Speaking aboard Air Force One on Tuesday, he described India as a “good friend” but criticised the high tariffs India levies on American imports, saying, “India has charged basically more tariffs than almost any other country… You just can’t do that.”
Meanwhile, India's Commerce Minister Piyush Goyal had recently clarified that India will not commit to any trade deal based on deadlines. He emphasised that a trade agreement with the US will only be accepted when it is final, mutually concluded, and serves India’s national interest.