The United States is continuing trade discussions with India after President Donald Trump announced that a 25% tariff on Indian goods would take effect starting Friday, along with an unspecified penalty. This is expected to heighten tensions between the two nations.
At a White House briefing later in the day, Trump signaled room for further negotiation, mentioning that India currently maintains some of the world’s steepest tariffs, but is open to significant reductions. Talks between Washington and New Delhi are ongoing, with updates expected by week’s end.
The proposed 25% tariff places India under stricter scrutiny than most other major U.S. trading partners and threatens to undermine extensive negotiations, potentially complicating a crucial alliance that serves as a counterweight to China in the region.
Details regarding the additional penalty remain unclear, but Trump indicated that it was a response to India’s ongoing purchases of Russian arms and oil as well as what he described as “obnoxious non-monetary Trade Barriers”. He also cited India’s participation in the BRICS bloc—a coalition Trump characterized as antagonistic to U.S. interests—as part of the administration’s rationale.
Earlier in July, Trump stated the United States would introduce an extra 10% tariff on imports from countries backing what he termed “Anti-American policies” of the BRICS group.
The latest announcement regarding India arrives as several nations face a Friday deadline to finalize reciprocal tariff agreements or face new trade restrictions imposed by Washington. These measures were part of a wave of trade policy developments unveiled by the White House on Wednesday.
