U.S. Imposes Tariffs on India Amid Trade Negotiations

WASHINGTON, July 30 (Reuters) – President Trump announced on Wednesday that the United States would impose a 25% tariff on goods imported from India, starting Friday. The announcement came as negotiations between the two nations continue regarding trade relations.

Trump indicated there is still room for negotiation, stating, “They have one of the highest tariffs in the world now, they’re willing to cut it very substantially.” He emphasized that discussions are ongoing and results may emerge by the end of this week.

The new tariff specifically targets India, which could potentially disrupt months of negotiations aimed at strengthening ties between the U.S. and the world’s most populous democracy. This move also poses a challenge to the U.S. strategy in counterbalancing China’s influence in the region.

The details regarding the penalty mentioned in Trump’s earlier social media post remain unclear. He suggested that this penalty could be linked to India’s purchases of Russian arms and oil, as well as its “obnoxious non-monetary Trade Barriers.”

Trump highlighted that the upcoming 10% tariff would affect imports from countries that support what he described as “Anti-American policies” associated with the BRICS group, which includes India.

Historically, the U.S. has voiced concerns over India’s high tariffs, reaching nearly 39% on agricultural goods, with even higher rates for certain products like vegetable oils and corn. In a Truth Social post, Trump reiterated, “While India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high.”

In response, the Indian government announced it is evaluating the implications of Trump’s tariffs but remains committed to achieving a fair trade deal. An official statement said, “India and the U.S. have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months.”

As of now, Russia remains India’s top oil supplier, accounting for 35% of its overall oil imports in early 2025. Meanwhile, the U.S. faces a $45.7 billion trade deficit with India, its fifth largest trading partner.