The US will impose 25% tariffs on goods imported from India “plus an unspecified penalty” for buying Russian energy and weapons, President Trump has said.<\/p>\n
In a post on his Truth Social platform, he said the measures would take effect from from 1 August, the US deadline for a trade deal. He described India as a friend whose “tariffs are far too high, among the highest in the world”.<\/p>\n
He also criticised India’s purchases of Russian military equipment and energy “when everyone wants Russia to STOP THE KILLING IN UKRAINE”.<\/p>\n
There was no immediate response from India, which has been negotiating a trade deal with the US for months. Last year, the US had a trade deficit of $45.8bn (\u00a326.1bn) with India.<\/p>\n
Back in April, Trump had announced tariffs of up to 27% on Indian goods<\/a>, which were later paused. This Friday is the latest deadline for India and other countries to either reach a trade agreement or face increased tariffs.<\/p>\n Tariffs are taxes charged on goods imported from other countries. The US president has repeatedly taken aim at India’s high tariffs, branding it a “tariff king” and a “big abuser” of trade ties. <\/p>\n “But now I’m in charge, and you just can’t do that,” he said earlier on Tuesday.<\/p>\n Since April, both sides have been racing to negotiate an agreement, with officials sometimes sounding positive and at other times, measured.<\/p>\n “We continue to speak with our Indian counterparts. We’ve always had very constructive discussions with them,” US Trade Representative Jamieson Greer said earlier this week.<\/p>\n He also acknowledged that although he had earlier said a deal with India might be “imminent”, it needed to be understood that Delhi’s trade policy has been “protectionist for a very long time<\/a>” and has been “premised on strongly protecting their domestic market”. <\/p>\n Greer added that Trump has been focused on securing deals that substantially open other markets to the US.<\/p>\n Agriculture and dairy are among the key sticking points for both countries.<\/p>\n For years, Washington has pushed for greater access to India’s farm sector<\/a>, seeing it as a major untapped market. But India has fiercely protected it, citing food security, livelihoods and the interests of millions of small farmers.<\/p>\n Last week, Indian Commerce Minister Piyush Goyal told CNBC that the agriculture sector is sensitive for India<\/a> and that it will make sure that farmers’ interests are “well protected”. <\/p>\n Goyal also told news agencies that India remains “optimistic”<\/a> about striking a deal with Washington soon.<\/p>\n Speaking to Reuters, he said that India was making “fantastic progress” in talks with the US and that he hoped they were able to “conclude a very consequential partnership”. <\/p>\n Until recently, the US was India’s largest trading partner, with bilateral trade reaching $190bn in 2024. Trump and Modi have set a target to more than double this figure to $500bn.<\/p>\n India has already reduced tariffs on a range of goods – including Bourbon whiskey and motorcycles – but the US continues to run a $45bn (\u00a333bn) trade deficit with India, which Trump is keen to reduce.<\/p>\n Follow BBC News India on Instagram<\/a>, YouTube,<\/a> Twitter<\/a> and Facebook<\/a>.<\/p>\n