In a major jolt to India-US trade relations, US President Donald Trump has imposed a steep 25% tariff on Indian imports. Announcing his social media platform Truth Social, Trump didn’t hold back, saying: “I don’t care what India does with Russia. They can take their dead economies down together, for all I care. We have done very little business with India; their tariffs are too high, among the highest in the world.”
Trump also took aim at trade ties with Russia, adding, “Russia and the USA do almost no business together. Let’s keep it that way.”
Repeated Criticism Over High Tariffs
Just a day before, Trump had slammed India’s trade practices again on Truth Social, claiming: “Over the years, we have 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.”
India Reacts Cautiously
In response, the Indian government said it is currently “studying the implications” of Trump’s announcement and reiterated its commitment to securing a “fair and balanced trade deal.”
The 25% tariff, which was officially imposed on July 30, comes as a heavy blow to India’s ongoing trade talks with the US. Trump also slapped penalties on nations that continue importing oil from Russia, another move likely aimed at tightening pressure.
Tariffs Kick In Next Month
Trump’s new tariff policy will take effect starting in August, specifically targeting countries like India that haven’t yet reached favorable trade deals with Washington.
According to White House economic advisers, Trump has been growing increasingly “frustrated” with slow progress in talks with India. “He believes a 25% tariff will address and remedy the situation,” they said.
Trump Wants India’s Agriculture & Dairy Access
A major sticking point in US-India trade negotiations has been New Delhi’s hesitation to open up its agriculture and dairy markets to American imports — something Trump has long insisted on.
Markets React Sharply
Indian stock markets weren’t spared either. Both benchmark indices, Nifty50 and BSE Sensex, saw steep drops following Trump’s announcement.
Nifty50 slid below 24,700 and BSE Sensex fell by over 600 points during intraday trade
This latest development adds a fresh layer of uncertainty to the already complex India-US trade equation, with global markets keeping a close watch as tensions rise.
Anuj Prajapati