US President Donald Trump said on Wednesday that the United States will impose a 25 percent tariff on the goods imported from India Starting August 1.
He said that India, which has the fifth largest economy in the world, will also face an unlimited penalty on August 1, but it did not clarify the amount or what it was.
“While India is our friend, we have, over the years, have done relatively few businesses with them because their tariffs are very high, among the highest in the world, and they have the most heavy and unconfirmed commercial barriers in any country,” Trump wrote in a social publication in fact.
“They have always bought a vast majority of their military equipment from Russia, and they are the largest energy buyer in Russia, along with China, at a time when everyone wants Russia to stop killing in Ukraine – all things are not good!”
The Indian Ministry of Commerce, which leads commercial negotiations with the United States, did not immediately respond to a request for suspension.
Trump’s decision notifies the hopes of a limited trade agreement between the two countries, which were under negotiation for several months.
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American and Indian commercial negotiators have held multiple rounds of discussions to solve controversial issues, especially reaching markets for American agricultural dairy products and dairy products.
Despite the progress in some areas, Indian officials resisted the opening of the local market for wheat, corn, rice, and genetically modified soybeans, pointing to risks to the leagues of millions of Indian farmers.
The new customs tariff is expected to affect goods exports in India to the United States, which is estimated at $ 87 billion in 2024, including intensive products such as clothes, pharmaceutical preparations, gemstones, jewelry and petrochemical.
The United States currently has a $ 45.7 billion commercial deficit with India.
India is now joining a growing list of countries facing a higher tariff under Trump’s “Tahrir’s Day” policy, which aims to reshape US trade relations by similarly demanding.
The White House had warned by India against the average applied definitions – approximately 39 percent on agricultural products, with their prices to 45 percent on vegetable oils and about 50 percent on apples and corn.
The setback comes despite the previous obligations made by Prime Minister Narendra Modi and Trump to conclude the first phase of the commercial deal by autumn 2025 and expand bilateral trade to $ 500 billion by 2030, up from $ 191 billion in 2024.
US manufacturing exports to India, which are estimated at about $ 42 billion in 2024, as well as energy exports such as LNG, raw oil and coal, can face reprisals if India chooses to respond in kind.
Indian officials have previously indicated that they view the United States as a major strategic partner, especially in the budget China. However, they stressed the need to maintain the space of politics on agriculture, data governance, and state benefits.
By Susan Haifi, Catherine Jackson in Washington, Manoj Kumar and Aftab Ahmed in New Delhi; Edit by Deina Chiako and Mark Heinrich
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