The tariff hammer of US President Donald Trump has fallen squarely on India, with a 25% tariff on its goods and an additional “penalty” being imposed. These stringent measures, effective August 1, are a direct consequence of India’s ongoing dealings with Moscow, specifically its procurement of arms and energy.
On his Truth Social platform, Trump, while calling India a “friend,” voiced strong disapproval of its trade policies. He highlighted a “massive” US trade deficit, India’s “far too high” tariffs on American imports, and “strenuous and obnoxious” non-monetary trade barriers as justifications for the new duties.
The President’s remarks underscored his frustration with India’s “vast” purchases of Russian military equipment and energy, asserting these actions undermine efforts to halt the conflict in Ukraine. This direct linkage of trade policy to foreign policy objectives is a key characteristic of Trump’s administration.
As the August 1 deadline for various trade agreements approaches, India faces significant economic headwinds. With US goods trade with India at an estimated $129.2 billion in 2024, and a $45.7 billion deficit for the US, these tariffs are poised to have a substantial impact on India’s export-oriented industries.