Trump Imposes Steep Tariffs on India Amid Trade and Geopolitical Tensions
US President cites "rigid, complicated, and irritating" regulations and ongoing Russian energy purchases as reasons for immediate 25% import duty
- President Trump has imposed a 25% tariff on all Indian imports, effective from August 1st.
- The tariffs were announced after the collapse of trade deal negotiations, with Trump citing India's own high tariffs and "rigid" trade barriers as justification.
- Geopolitical tensions also contributed to the decision, specifically India's continued purchases of energy and military equipment from Russia.
US President Donald Trump has announced a decisive 25% tariff on Indian imports, effective immediately from 1st August, branding India as one of the nations with the highest global tariffs.
The decision, posted on his Truth Social platform late last night (30th July), follows the collapse of a trade deal, with Trump citing India's "overly rigid, complicated and irritating" regulations.
Furthermore, President Trump highlighted India's continued procurement of oil and natural gas from Russia, despite warnings from the US.
He hinted at potential "additional punitive measures" if India persists in these energy purchases.
Trump stated that India has "some of the highest tariffs in the world" and "some of the most rigid and irritating non-tariff trade barriers (NTB) compared to other countries."
"Additionally, India has consistently bought most of its military equipment from Russia and is one of Russia's largest energy buyers, along with China, at a time when everyone wants Russia to stop the slaughter in Ukraine… Therefore, India will pay a 25% import duty plus the aforementioned punitive measures, starting from 1st August," Trump declared.
Trump's announcement precedes a 1st August deadline he had set for new tariffs on dozens of trading partners worldwide.
It dashes India's hopes for special treatment, despite being one of the first nations to quickly open negotiations with the US following Prime Minister Narendra Modi's official visit to the White House in February this year.
Throughout the preceding period, the Modi government had adopted a conciliatory stance towards Trump, including restructuring import tariffs and offering various trade and immigration benefits to the Trump administration.
However, in recent weeks, the Indian government's position began to harden as negotiations encountered significant obstacles concerning sensitive issues, particularly in the agricultural sector.
Previously, Trump had hinted at a "very big" trade deal coming soon, potentially opening the Indian market to American businesses.
However, the US leader's tone subsequently shifted, and on Tuesday, he indicated that tariffs of 20-25% on Indian goods might be imposed, a considerably higher rate compared to Japan's 15% and several Asian countries receiving 19%.
Despite facing the new tariffs, Indian officials reportedly plan to continue bilateral trade negotiations with the US, aiming to conclude an agreement by this autumn, according to Bloomberg.
