Washington: In a move that signals mounting tensions in the ongoing trade negotiations between India and the United States, US President Donald Trump has announced a 25 per cent tariff on India effective from August 1. The decision comes amid a perceived stalemate in discussions over a bilateral trade agreement.
President Trump, in a social media post, outlined the reasons behind the move, citing India's high tariff structure, its reliance on Russia for military equipment and energy, and what he described as "obnoxious non-monetary trade barriers."
“India will be paying a tariff of 25 per cent plus a penalty,” Trump declared, asserting that the United States has maintained a significant trade deficit with India. He criticised India’s tariffs as being among the highest in the world and accused the country of having some of the “most strenuous and obnoxious” non-monetary trade restrictions.
Although he acknowledged India as a “friend,” Trump expressed frustration over what he termed as years of limited business due to these barriers. He also raised concerns over India’s continued procurement of military equipment and energy from Russia, calling India one of Russia’s largest buyers alongside China. These comments were made in the context of the ongoing Ukraine conflict, with Trump stating, “All things not good!”
The tariff imposition is to begin on August 1 and includes an additional penalty, though specific details of the penalty were not disclosed.
There has been no immediate official response from India regarding this announcement.
Meanwhile, a US delegation is expected to visit India next month for the next round of trade negotiations. Last week, the fifth round of talks concluded in Washington, where India’s chief negotiator and Special Secretary in the Department of Commerce, Rajesh Agrawal, held deliberations with Brendan Lynch, Assistant US Trade Representative for South and Central Asia.
With PTI inputs