New Delhi/Washington: In a dramatic escalation of trade tensions, former US President Donald Trump on Wednesday announced a 25% tariff on Indian exports, effective August 1, alongside a potential penalty for India’s continued energy and defense ties with Russia. The announcement, made via his Truth Social platform, marks a significant shift in Trump’s tone towards India, which he called a “friend with unfair trade practices.”
Trump lashed out at India’s “high tariffs and non-monetary trade barriers,” calling them among “the most strenuous and obnoxious” in the world. He also criticized India’s reliance on Russian military hardware and oil, linking it to global calls for ending the war in Ukraine.
“India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August 1. Thank you for your attention to this matter. MAGA!” Trump declared in his post.
Although no specifics were given regarding the penalty amount, Trump said the decision follows years of imbalanced trade and India’s “massive” contribution to the US trade deficit.
India Reacts
In a measured but firm response, the Indian government said it had taken note of Trump’s statement and is assessing the implications. The Ministry of Commerce and Industry emphasized that India remains committed to concluding a fair and balanced trade agreement with the United States, with talks ongoing for several months.
“The government will take all necessary steps to secure our national interest, as has been the case in other trade negotiations,” the ministry stated, citing the recently concluded India–UK Comprehensive Economic and Trade Agreement as an example.
India also reaffirmed its commitment to protecting key sectors such as MSMEs, agriculture, and startups, which could be impacted by any tariff shocks.
As Trump ramps up his campaign for the 2024 elections with tough trade rhetoric, India now finds itself walking a diplomatic tightrope—balancing strategic autonomy with global pressure on Russia, while safeguarding its export economy from rising protectionism.
