Trump announces 25% tariffs on India starting Aug 1, plus ‘penalty’ for trading with Russia

“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!” he wrote.

However, he did not clarify what exactly the “penalty” would entail beyond the newly announced 25 per cent tariff.

“WE HAVE A MASSIVE TRADE DEFICIT WITH INDIA!!!” he added.

India’s response to Trump

In its first response following Trump’s announcement of new tariffs, India said it had “taken note” of the statement and underlined its continued commitment to a fair bilateral trade agreement with the United States. The government also pointed out that negotiations between the two countries had been underway for several months.

“The Government has taken note of a statement by the US President on bilateral trade. The Government is studying its implications. India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective,” the Ministry said in a statement issued Wednesday evening.

Highlighting that the government places the “utmost importance on protecting and promoting the welfare of” farmers, entrepreneurs, and MSMEs, the Ministry also drew a parallel to the recent trade agreement signed with the UK.

“The Government will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK,” the statement added.

The United States and India have been discussing a trade deal for months, but no final agreement has been reached. Trump has been pressing for greater access for American goods to the Indian market. He has often made similar demands in other trade negotiations.

Trump imposed a 26 per cent tariff on Indian goods, while announcing his ‘Liberation day tariffs’ in April. Although steep, the levy was lower than the total 104 per cent imposed on China, 49 per cent on Cambodia, and 46 per cent on Vietnam.

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