Trump Hits India with 25% Tariffs Over Trade Dispute
In a bold move, former US President Donald Trump has announced a 25% tariff on Indian goods imported to the US, effective from August 1. Citing India’s “high tariffs” and continued purchases of oil and military equipment from Russia, Trump claimed India had long taken unfair advantage of the US.
The announcement was made via Trump’s Truth Social account, where he accused India of creating trade barriers and ignoring global pressure to cut ties with Moscow. He warned of an additional unspecified penalty for these associations.
India responded by stating it is committed to a “fair, balanced, and mutually beneficial” trade agreement with the US, while also emphasizing the importance of protecting Indian farmers, entrepreneurs, and MSMEs. The Indian government is currently reviewing the implications of Trump’s statement.
This move reignites trade tensions that have simmered for years. Back in April, Trump had threatened a similar tariff hike of up to 27%, which was later paused to allow time for negotiations. Agriculture and dairy remain major sticking points in the trade talks, as the US seeks broader market access.
With the US trade deficit with India at $45.8 billion in 2024, Trump is determined to rebalance the trade relationship. India, on the other hand, maintains its policies are based on food security and protecting its small-scale producers.
India’s Commerce Minister Piyush Goyal remains optimistic, saying that the two nations are making “fantastic progress” toward a significant partnership.
As the August 1 deadline looms, all eyes are on the future of US-India trade relations and how both sides navigate this economic and diplomatic challenge.
