US President Donald Trump has confirmed a 25% tariff on Indian exports to the United States as well as other financial penalties to begin on August 1. The decision comes as the US and India have not yet reached a trade deal.
"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 claimed in a post on his Truth Social platform.
"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 added.
Following Trump's announcement, the Indian government said it had taken note of the statement and would take all steps necessary to secure its national interest and that it was committed to a "fair, balanced" trade agreement.
Why is Trump criticizing India's Moscow-friendly stance now?
India and Russia have friendly ties, despite Russia's invasion of Ukraine, which started in February 2022.
Although the US, EU and other nations such as Japan imposed sanctions on Russia due to the invasion, India did not join in on the punitive economic measures on Moscow.
Trump's criticism of India's Moscow-friendly stance comes as the US president becomes more skeptical of Russian President Vladimir Putin's willingness to end the invasion of Ukraine and commit to peace.
Trump on Monday set a 10-day deadline for Russia to achieve a ceasefire deal with Ukraine, or else Moscow will face secondary sanctions. During the 2024 White House campaign, Trump vowed to end the conflict in Ukraine and stop the bloodshed.
New India tariffs come after trade progress with other countries
The new tariffs on India come as Trump has reached trade framework agreements with other countries such Japan, the Philippines, Indonesia and the EU.
India, the world's most populous country, also has one of the largest economies on the planet. Trump has long criticized India's trade policies, and he removed India's special trade status with the US in 2019 during his first term in office.
In April, a few months into his second term, Trump announced "reciprocal tariffs" on countries around the world of up to 50%, with a tariff of 26% set to be imposed on Indian goods. Later that month, Trump said he would postpone tariffs higher than 10% for 90 days to make room for trade negotiations, with the exception of China.
According to the US Census Bureau, the US had a $45.7 billion (€39.8 billion) trade deficit with India last year. Trump has often criticized US trade deficits with other countries, with the US importing more goods from India than it exports to the South Asian country.
Although Trump believes tariffs will balance US trade with India, many economists say the tariffs will be passed on to the American consumer, and that the levies could hurt US economic activity.
