Washington, July 30:
US President Donald Trump on Wednesday warned that India will face a 25 per cent tariff on its exports starting August 1 after trade negotiations between the two countries failed to reach a breakthrough.
Posting on Truth Social, Trump said, “India will be paying a tariff of 25% starting August 1,” while describing India as “our friend.” He also announced that India could face an additional 100 per cent “secondary tariff” for continuing to buy Russian energy if Moscow does not agree to a ceasefire with Ukraine by August 7.
Trump’s threat comes just a day before the deadline for concluding tariff agreements. While the US President and his officials, including Commerce Secretary Howard Lutnick, had earlier expressed optimism that India would be among the first countries to finalize a deal, the talks remain unfinished.
India’s Commerce Minister Piyush Goyal recently said in London that negotiations were making “fantastic” progress and expressed hope for a “very consequential partnership.” Both sides were expected to announce an interim agreement before August 1, with a comprehensive trade pact possibly timed with Trump’s visit to India later this year for the Quad summit.
Trump accused India of imposing “the most strenuous and obnoxious non-monetary trade barriers of any country,” maintaining high tariffs, and relying on Russian military equipment and energy.
The US has been demanding zero tariffs on its exports. One of the major sticking points has been US access to Indian agricultural markets.
Recently, Washington agreed on tariff rates of 15% with Japan and the EU, 19% with Indonesia and the Philippines, while announcing unilateral tariffs on several Southeast Asian nations.
