US President Donald Trump has announced new 25% tariffs on Indian imports starting August 1. Additionally, he warned of a “penalty” for India continued trade with Russia, including purchases of oil and military equipment.
The announcement was made via Trump’s Truth Social account, where he claimed that although India is a “friend,” its tariffs are “among the highest in the world.”
HE stated, “I don’t care what India does with Russia. They can take their dead economies down together, for all I care. We have done very little business with India, their Tariffs are too high, among the highest in the World. Likewise, Russia and the USA do almost no business together. Let’s keep it that way, and tell Medvedev, the failed former President of Russia, who thinks he’s still President, to watch his words. He’s entering very dangerous territory!”
He also criticised India’s ongoing energy and defense ties with Russia amid the Ukraine conflict, saying, “Everyone wants Russia to STOP THE KILLING IN UKRAINE.”
India Responds, Says Committed to Fair Trade Deal
India has responded by stating its commitment to a “fair, balanced, and mutually beneficial bilateral trade agreement” with the US. The Indian government emphasized that it will take all necessary steps to protect the interests of its farmers, entrepreneurs and small businesses.
The Statement stated, “The government will take all steps necessary to secure our nationl interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK.”
A government spokesperson said India was carefully reviewing Trump’s latest remarks and underlined that national interest remains the top priority.
Trade Talks and Sticking Points
Talks between India and the US have been ongoing since April, after Trump initially proposed tariffs of up to 27%—which were later put on hold. The current Friday deadline marks a critical point for India and other nations to finalize trade agreements or face heightened tariffs.
Key hurdles include access to India’s agricultural and dairy markets. The US sees India’s farming sector as a major opportunity, while India insists on protecting it due to food security and the livelihoods of millions of small farmers.
Indian Commerce Minister Piyush Goyal said last week that the agriculture sector remains sensitive, but he is optimistic about a breakthrough with the US. “We are making fantastic progress,” he told Reuters.
India-Russia Relations: Trade, Energy and Defense Ties Strengthen
India’s imports of discounted Russian crude oil have surged dramatically — from under 2% before the Ukraine war to over 40% by June 2024. Indian companies have also started exporting refined fuels made from Russian oil, with some of those shipments reportedly reaching Western countries.
The partnership between India and Russia extends beyond oil. Both nations continue to collaborate closely in the nuclear energy sector, thanks to a long-standing relationship built over decades.
Russia also remains a major defense partner for India, supplying weapons at lower costs, often without strict end-user conditions, and sharing advanced military technologies that are not easily available from other countries.
