US president Donald Trump has announced that ‘India will be paying 25% tariff, along with additional penalty’ from 1st August, indicating that the trade deal between the two countries have failed. Trump cited India’s high tariff and the country’s purchase of Russian military hardware and Russian energy as the reason of the higher tariff on India.
Trump said that Ind has the most strenuous and obnoxious non-monetary Trade Barriers of any Country. He said that while India is a friend of US, the Americans have done relatively little business with India because India’s high tariffs. He posted on Truth Social, “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.”
Citing India’s close relations with Russia, Trump said, “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!”
Therefore, he announced in capital letters, “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!”
In a follow-up post, Donald Trump wrote, “WE HAVE A MASSIVE TRADE DEFICIT WITH INDIA!!!”.
India and US were undergoing hectic negotiations for a trade deal, which would have led to exception from Trump’s high tariff, like the recently concluded US-Japan trade deal. However, the talks had stalled over several issues, includes India’s refusal allow import of American agricultural products.
Now, Trump’s comment almost confirms that the talks have failed, and Indian exports to US will face 25% tariff from the 1st of next month. However, the tariffs will be have to be paid by the importer and end consumers in the US, not by India, as Trump is claiming.
