India-US trade deal: Donald Trump imposes 25% tariffs on India – top developments | India News

Donald Trump tariffs (AI picture)

NEW DELHI: President Donald Trump on Wednesday introduced a 25% tariff on imports from India, efficient August 1. In a submit on Truth Social, Trump said that the nation maintains “some of the highest tariffs in the world” and “non-monetary trade barriers” that he described as restrictive. He additionally raised issues over India’s continued protection and power purchases from Russia.“India will therefore be paying a tariff of 25%, plus a penalty for the above, starting on August first,” Trump stated in his submit.

Top developments on Trump’s imposition of 25% tariff on India:

‘While India is our pal … ‘

Trump introduced a 25% tariff on India amid indicators of some stalemate within the ongoing negotiations between the 2 international locations on a bilateral trade deal.Trump, asserting the tariff, listed India’s excessive tariffs, its procurement of “vast majority” of army gear and power from Russia in addition to “obnoxious non-monetary trade barriers”.India shall be paying a “tariff of 25 per cent plus a penalty” from August 1, he stated, including “we have a massive trade deficit with India”.The US president, in a social media submit, nevertheless, described India as a “friend”. While India is our pal, we’ve, over time, performed comparatively little enterprise with them as a result of their tariffs are far too excessive, among the many “highest” on this planet, they usually have the “most strenuous and obnoxious” non-financial trade obstacles, he stated.

‘Penalty’ for Russian oil

Trump, asserting the tariff, listed India’s procurement of “vast majority” of army gear and power from Russia in addition to “obnoxious non-monetary trade barriers”.“Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!” he stated.Trump’s remarks on India come a day after he issued a ten-day ultimatum to Russia to conform to a ceasefire in Ukraine. As a part of this push, Trump has threatened secondary sanctions on international locations that proceed to purchase Russian oil and fuel.The proposed penalties are a part of broader US efforts to isolate Russia economically and discourage international locations from participating in power trade that could possibly be seen as undermining worldwide sanctions.

What subsequent for India-US trade talks?

The United States and US are engaged in excessive-degree diplomatic talks to finalise a bilateral trade settlement. However current weeks noticed a stall in negotiations, with disagreements rising round agriculture and market entry. Trump, who had earlier hinted at a “very big” trade take care of India, shifted tone and stated tariffs between 20% and 25% have been into consideration.Despite the brand new levies, Indian officers are anticipated to proceed pursuing trade negotiations with the US. The two international locations had finalised a framework for a bilateral pact in April following a gathering between US Vice President JD Vance and PM Modi in New Delhi. The US officers are anticipated to go to India later in August to finalise the deal.The United States stays India’s largest buying and selling associate, with bilateral trade amounting to $127.9 billion in 2024.

‘India paying value for Modi’s friendship’: Congress

Soon after Trump’s announcement, Congress lashed out on the Centre saying the “country is now bearing the cost of Narendra Modi’s ‘friendship’”.“Trump slapped a 25% tariff on India, along with a penalty. The country is now bearing the cost of Narendra Modi’s ‘friendship’. Modi campaigned for Trump, hugged him eagerly, posed for photos, and made it trend on social media. In the end, Trump still imposed tariffs on India. India’s foreign policy has completely failed,” Congress stated on X.“President Trump has slapped a tariff of 25% plus penalty on imports from India. All that taarif between him and Howdy Modi has meant little,” Jairam Ramesh stated.