Just a day before the August 1 deadline for finalizing trade pacts, former U.S. President Donald Trump declared new tariffs of 25% on Indian goods, with an unspecified “penalty” still to follow. The announcement came via Trump’s post on Truth Social, where he criticized India for long-standing protectionist trade practices.
Trump claimed that the U.S. has had limited commercial engagement with India due to its restrictive market and further cited India’s heavy dependence on Russian military equipment and energy as a concern. He accused India and China of being major buyers of Russian oil despite global pressure on Russia to halt the war in Ukraine.
“Our trade deficit with India is massive!” Trump wrote, expressing frustration over the ongoing imbalance and lack of substantial progress in trade negotiations.
The specifics of the additional “penalty” were not revealed, leaving room for speculation about further economic measures. The current 25% tariff adds to a previous 26% tariff imposed in April under what Trump had termed “Liberation Day Tariffs.” India, while facing steep duties, fares better compared to China (104%), Cambodia (49%), and Vietnam (46%).
Negotiations between the U.S. and India on a broader trade agreement have been underway for months, focusing on opening India’s markets further to American exports. However, no comprehensive deal has yet materialized, and Trump’s move signals growing impatience.
The announcement could impact bilateral trade ties and push India to reassess its global supply chain and defense procurement strategies.