The United States is set to impose tariffs of 25% on goods imported from India, accompanied by “an unspecified penalty” in response to India’s purchases of Russian energy and weapons, according to President Trump.
In a statement posted on his Truth Social platform, the former president indicated that these measures are scheduled to take effect on August 1, the deadline previously set by the US for a trade agreement. He characterized India as a friend, while also asserting that its “tariffs are far too high, among the highest in the world.”
President Trump also voiced criticism regarding India’s procurement of Russian military equipment and energy resources, particularly “when everyone wants Russia to STOP THE KILLING IN UKRAINE.”
As of yet, there has been no official response from India, which has been engaged in trade negotiations with the US for several months. Last year, the US recorded a trade deficit of $45.8 billion with India.
Back in April, Trump had announced tariffs of up to 27% on Indian goods, which were later paused. This Friday represents the latest deadline for India and other nations to either finalize a trade agreement or face the prospect of increased tariffs.
Tariffs are taxes levied on goods imported from other countries. The US president has consistently targeted India’s tariffs, labeling the country a “tariff king” and a “big abuser” of trade relations.
“But now I’m in charge, and you just can’t do that,” he said earlier on Tuesday.
Since April, both sides have been racing to negotiate an agreement, with officials sometimes sounding positive and at other times, measured.
“We continue to speak with our Indian counterparts. We’ve always had very constructive discussions with them,” US Trade Representative Jamieson Greer said earlier this week.
He also acknowledged that although he had earlier said a deal with India might be “imminent”, it needed to be understood that Delhi’s trade policy has been “protectionist for a very long time” and has been “premised on strongly protecting their domestic market”.
Greer added that Trump has been focused on securing deals that substantially open other markets to the US.
Agriculture and dairy are among the key sticking points for both countries.
For years, Washington has pushed for greater access to India’s farm sector, seeing it as a major untapped market. But India has fiercely protected it, citing food security, livelihoods and the interests of millions of small farmers.
Last week, Indian Commerce Minister Piyush Goyal told CNBC that the agriculture sector is sensitive for India and that it will make sure that farmers’ interests are “well protected”.
Goyal also told news agencies that India remains “optimistic” about striking a deal with Washington soon.
Speaking to Reuters, he said that India was making “fantastic progress” in talks with the US and that he hoped they were able to “conclude a very consequential partnership”.
Until recently, the US was India’s largest trading partner, with bilateral trade reaching $190bn in 2024. Trump and Modi have set a target to more than double this figure to $500bn.
India has already reduced tariffs on a range of goods – including Bourbon whiskey and motorcycles – but the US continues to run a $45bn (£33bn) trade deficit with India, which Trump is keen to reduce.
Follow BBC News India on Instagram, YouTube, Twitter and Facebook.
Trump’s volatile trade policy has thrown the world economy into chaos, and put some US prices up.
Eric Trump was asked by the BBC if his father would like to see him or one of the family make a bid for the presidency.
The US president made an unprompted remark while addressing journalists on Air Force One.
The deployment included 6,144 Police Scotland officers and another 1,197 from other UK forces
Ollie Pope leads England in place of captain Ben Stokes, who has been ruled out of the fifth Test against India starting at The Oval on Thursday.