Trump imposes 25% tariff on India starting from August 1

Former U.S. President Donald Trump has announced the imposition of a 25 percent tariff on Indian imports, effective from August 1, plus an additional import tax because of India’s purchasing of Russian oil. 

The decision was revealed by Trump through his social media account, marking a significant development in U.S.-India trade relations.

"India is our friend, but over the years, we have had very little trade with them," Trump stated. He further criticized India's high tariff rates, calling them the "highest in the world" and attributing the limited trade between the two countries to this disparity.

"Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country," Trump said.

He also posted in an all-caps message that the United States has a "massive" trade deficit with India.

He added that India has "always bought a vast majority of their military equipment from Russia, and is Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE."

Trump did not specify what the penalty he referred to for the Russia trade will be.

The measure comes as the 79-year-old Republican has signaled he intends to tighten US pressure on Moscow to halt fighting in Ukraine and negotiate a peace deal.

On Tuesday, Trump said he was giving Russian President Vladimir Putin 10 days -- which would mean the end of next week -- to change course in Ukraine or face unspecified punishment.

"We're going to put on tariffs and stuff," he said, but "I don't know if it's going to affect Russia because he wants to keep the war going."

 The new tariff is expected to impact a wide range of Indian goods entering the US market, escalating tensions in trade relations between the two strategic allies.

 While Trump acknowledged India as a key partner, his administration has consistently pushed for more favorable trade terms, arguing that American businesses face unfair barriers in the Indian market.

Trade experts suggest that the move could prompt retaliatory measures from New Delhi, potentially affecting US exports to India.

The Indian government has yet to issue an official response, but industry leaders have expressed concerns over the economic repercussions of the heightened tariffs.

This decision comes amid ongoing negotiations between the US and several trading partners, as the Trump administration continues its push for what it calls "fair and reciprocal trade." 

 The latest tariff imposition signals a tougher stance on nations with perceived trade advantages over the US.

India, the world's most populous country, was one of the first few major economies to engage Washington in broader trade talks.

But six months later, Trump's sweeping demands and India's reluctance to fully open its agricultural and dairy sectors have so far prevented New Delhi from sealing a deal that would shield it from punitive tariffs.

On Tuesday, Trump had said India could face a 20-25 percent rate since a trade deal had not been finalized. The announced tariffs will mark a huge leap from the current 10 percent baseline tariff on Indian shipments to the United States.

Trump has set out to upend the global economy by trying to leverage US economic power to squeeze trading partners with tariffs and force foreign companies to move to the United States.

Complex talks are underway with the European Union, China, Canada, and other big partners.

Trump has threatened to hit dozens of other countries with stiffer tariffs from this Friday unless they reach trade deals.

Among them is Brazil, which Trump has threatened to hit with 50 percent import tariffs -- in part to pressure the South American ally to shut down the trial of far-right former president Jair Bolsonaro on coup charges.