The US will impose 25% tariffs on goods imported from India “plus an unspecified penalty” for buying Russian oil and weapons, President Trump has said.
In a post on his Truth Social platform, he said the measures would take effect from from 1 August, the US deadline for a trade deal. He described India as a friend whose “tariffs are far too high, among the highest in the world”.
He also criticised India’s purchases of Russian military equipment and energy “when everyone wants Russia to STOP THE KILLING IN UKRAINE”.
India said it was committed to “concluding a fair, balanced and mutually beneficial bilateral trade agreement”. Last year, the US had a trade deficit of $45.8bn (£26.1bn) with India.
Back in April, Trump had announced tariffs of up to 27% on Indian goods, which were later paused. This Friday is the latest deadline for India and other countries to either reach a trade agreement or face increased tariffs.
Tariffs are taxes charged on goods imported from other countries. The US president has repeatedly taken aim at India’s high tariffs, branding it a “tariff king” and a “big abuser” of trade ties.
“But now I’m in charge, and you just can’t do that,” he said earlier on Tuesday.
India’s government said it was studying the implications of Trump’s remarks.
It said it “attaches the utmost importance to protecting and promoting the welfare” of Indian farmers, entrepreneurs and small businesses.
“The government will take all steps necessary to secure our national interest.”
Since April, both sides have been racing to negotiate an agreement, with officials sometimes sounding positive and at other times, measured.
“We continue to speak with our Indian counterparts. We’ve always had very constructive discussions with them,” US Trade Representative Jamieson Greer said earlier this week.
He also acknowledged that although he had earlier said a deal with India might be “imminent”, it needed to be understood that Delhi’s trade policy has been “protectionist for a very long time” and has been “premised on strongly protecting their domestic market”.
Greer added that Trump has been focused on securing deals that substantially open other markets to the US.
Agriculture and dairy are among the key sticking points for both countries.
For years, Washington has pushed for greater access to India’s farm sector, seeing it as a major untapped market. But India has fiercely protected it, citing food security, livelihoods and the interests of millions of small farmers.
Last week, Indian Commerce Minister Piyush Goyal told CNBC that the agriculture sector is sensitive for India and that it will make sure that farmers’ interests are “well protected”.
Goyal also told news agencies that India remains “optimistic” about striking a deal with Washington soon.
Speaking to Reuters, he said that India was making “fantastic progress” in talks with the US and that he hoped they were able to “conclude a very consequential partnership”.
Until recently, the US was India’s largest trading partner, with bilateral trade reaching $190bn in 2024. Trump and Modi have set a target to more than double this figure to $500bn.
India has already reduced tariffs on a range of goods – including Bourbon whiskey and motorcycles – but the US continues to run a $45bn (£33bn) trade deficit with India, which Trump is keen to reduce.
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