US President Donald Trump has imposed a 25% tariff on goods imported from India. He also announced extra penalties. But during a press conference at the White House on Wednesday, he hinted at possible progress.
“We are negotiating, and we’ll see what happens,” Trump said, suggesting that discussions between Washington and New Delhi are ongoing.
Trump Criticizes India's High Tariffs
Trump strongly criticized India’s trade policies, calling its tariffs among the highest in the world. “We’re talking to them now. We’ll see what happens,” he said when asked if talks were on.
He added, “Again, India was the highest or just about the highest tariff nation in the world, one of the highest — 100 points, 150 points or percentages… They had 175 per cent and higher than that.”
Trump Slams India’s Role in BRICS Bloc
Trump also commented on India’s role in the BRICS alliance, which includes Brazil, Russia, India, China, and South Africa. He claimed the bloc acts against US interests.
“They have BRICS, which is basically a group of countries that are anti-United States, and India is a member of that, if you can believe it,” Trump said.
He went on to accuse BRICS of trying to weaken the US dollar. “It’s an attack on the dollar, and we’re not going to let anybody attack the dollar. It’s partially BRICS, and it’s partially the trade. This trade situation is a deficit. We had a tremendous deficit.”
‘Modi is a Friend, But Trade Terms Are Unfair’
Despite his tough words, Trump said he considers Indian Prime Minister Narendra Modi a “friend.” Still, he pointed out that the current trade balance heavily favors India.
“As you know, Prime Minister Modi is a friend of mine, but they don’t do very much business in terms of business with us. They sell a lot to us, but we don’t buy from them. You know why? Because the tariff is so high.”
He added that India is now ready to reduce its tariffs. “Now they’re willing to cut it very substantially. But we’ll see what happens. It doesn’t matter too much whether we have a deal or whether we charge them a certain tariff.”
Tariff Announcement Posted on Truth Social
Earlier that day, Trump made the tariff announcement on his social media platform, Truth Social. He linked the move to India’s strong military and energy ties with Russia.
“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,” he posted.
He continued to criticize India’s close dealings with Russia:
“They have the most strenuous and obnoxious non-monetary trade barriers of any country… 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!”
Trump ended his message by announcing, “INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST 1st. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!”
India Promises to Safeguard Local Interests
India quickly responded. The Indian government released a statement stressing its aim to protect local businesses and continue trade talks with the US.
“India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective,” the statement said.
It also mentioned that the government will take strong steps to protect farmers, entrepreneurs, and micro, small, and medium-sized enterprises (MSMEs).