“A massive trade deficit with India”: Trump justifies a 25 % tariff amid imbalance

US President Donald Trump re -tensions with India by announcing a 25 % tariff on Indian imports on Wednesday, noting what he called a “huge trade deficit” between the two countries. In a post on the social truth, Trump first announced that India will face a 25 % tariff on Indian imports as of August 1, and then published that the United States has a tremendous trade deficit with India.

“We have a huge trade deficit with India,” Trump said.

The US President’s decision to impose a 25 % tariff on Indian imports came a few days after the extension of the deadline until August 1. Shortly before the announcement, he reaffirmed that the deadline will not change, indicating that India must prepare for the new tariff messages to apply this on Friday.

According to official American data, the trade deficit with India in the goods reached 45.7 billion dollars in 2024. Cargo imported from the United States worth $ 87.4 billion from India, while only $ 41.8 billion to the country.

However, economists and analysts warn that these numbers only acquire the balance of merchandise trade. When services, education, technological transfers and royalties are taken into account, the United States is often recorded. This is primarily due to income from Indian students studying in the United States, program licensing, arms sales, and intellectual property royalties.

A recent report issued by the State Bank in India (SBI) has warned that the tariffs by 20 % on Indian goods can lead to a 0.5 % decrease in GDP in India, resulting from low export sizes and low competitiveness. A 25 % tariff effect can be more harmful.

SBI’s study also noted that every 1 % increase in tariffs can reduce Indian export sizes by 0.5 %, confirming the sensitivity of India -led growth model to international barriers.

This announcement comes at a time when the bilateral trade of India from the United States reached $ 190 billion in 2024. India has made efforts to reduce trade tensions by reducing duties on American goods such as Bourbon Whisky and Harley-Davidson Motorcycles. While Trump and Prime Minister Narendra Modi were previously a bold target to increase trade to $ 500 billion, newly imposed definitions can challenge this ambitious goal.

In his statement, Donald Trump criticized India’s commercial practices, celebrating, “India may be our friend, but we have done relatively limited work over the years because their tariffs are very high-which is the highest world level-and they maintain some of the most unrestricted commercial barriers in the world.”

He also expressed concern about the defense and the ongoing energy relations of India with Russia amid the Ukrainian conflict. “They have long relied on Russia for the majority of their military equipment, and they are one of the largest buyers of Russian energy, along with China, at a time when the world urges Russia to stop killing in Ukraine. This is concerned.”