By Soumya Ranjan Frustrated by the deadlocked trade talks with India, US President Trump has declared that a 25% tariff on Indian goods will go into effect on August 1. India’s high tariffs, non-monetary trade barriers, and ongoing reliance on Russia for military hardware and energy are the main causes of this decision.
US President Donald Trump is “frustrated” with the state of trade negotiations with India and believes that the situation will be “remedied” quickly by enacting 25% tariffs and a penalty for purchases of Russian oil and crude.
After the two nations were unable to reach an interim trade agreement before his deadline, the U.S. president declared 25% tariffs on India to take effect on August 1. Trump also declared that India would face “additional penalties” for its purchases of Russian weapons and oil.
“Keep in mind that even though India is a friend of ours, we have done very little business with them over the years due to their extremely high tariffs—some of the highest in the world—and their most onerous and annoying non-monetary trade barriers.
Additionally, at a time when everyone wants Russia to stop the killing in Ukraine, they are Russia’s biggest energy buyer alongside China and have historically purchased the great majority of their military hardware from Russia. Therefore, beginning in August, India will be paying a 25% tariff in addition to a penalty for the aforementioned. I appreciate you taking the time to read this. Trump declared, “MAGA!” on Truth Social.
Trump Is “Frustrated” With Talks About the India Deal
“I think President Trump is frustrated with the progress we’ve made with India but feels that a 25% tariff will address and remedy the situation in a way that’s good for the American people,” White House economic adviser Kevin Hassett was quoted as saying in a Reuters report.
More information regarding the additional penalty that Trump announced is anticipated “shortly” from both Trump and US Trade Representative Jamieson Greer.
India has become more adamant about opening up its dairy and agricultural industries. This appears to be a stumbling block in the ongoing trade deal negotiations. In late August, US officials are anticipated to travel to India for the sixth round of talks.
India’s Response to the US 25% Tariff
According to the Ministry of Commerce and Industry, an analysis of the possible impacts of US tariffs is presently underway. India has stated unequivocally that it will not sacrifice its interests as a nation in order to negotiate a trade agreement with the United States.
Both the United States and India have been involved in talks in recent months to create a fair and mutually beneficial trade agreement. According to the statement, this remains our top priority.
“The government places the highest priority on safeguarding and advancing the well-being of our farmers, business owners, and MSMEs. As has been the case with previous trade agreements, including the most recent Comprehensive Economic and Trade Agreement with the UK, the Government will take all necessary measures to protect our national interest,” the ministry’s statement continued.