President Donald Trump has announced that the United States will impose a 25% tariff on Indian goods, along with an additional penalty linked to India’s continued purchase of oil and military equipment from Russia.
Though Trump insisted India “is our friend” in a Truth Social post, he argued the country’s import duties on U.S. products are “far too high.” His administration, he said, will begin enforcing the new levies this Friday as part of a broader overhaul of tariffs impacting several countries.
The Indian government responded Wednesday, noting it is reviewing the implications of the new measures. New Delhi emphasized it remains committed to pursuing a “fair, balanced and mutually beneficial” bilateral trade deal, a negotiation that has stretched on for months, according to a statement from India’s Trade Ministry.
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Trump’s move follows a series of trade framework agreements his administration has recently negotiated with the European Union, Japan, Indonesia, and the Philippines. He claims these pacts will both open foreign markets to U.S. exports and create space to increase tariffs, generating revenue to offset budget deficits stemming from his tax reforms while reviving domestic manufacturing jobs.
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Yet economists caution that tariffs, while politically potent, risk fueling inflation and slowing economic growth. Domestic businesses and consumers may ultimately absorb many of the added costs. Meanwhile, more tariffs could be on the horizon, particularly on countries aligned with Russia or in sectors like pharmaceuticals and semiconductors.
White House National Economic Council Director Kevin Hassett said that additional Russia-related duties on India will be unveiled in coordination with U.S. Trade Representative Jamieson Greer, though no specific figures have been disclosed.
Trump’s tariff strategy is also ruffling feathers among allies. His decision to impose a 15% import tax on European Union goods has provoked backlash, prompting Canada and some EU states to reconsider their alignment with U.S. global leadership.
French President Emmanuel Macron, reacting to the trade framework, remarked during a cabinet session that Europe “does not see itself sufficiently” as a global power. Calling for greater European assertiveness, he added: “To be free, you have to be feared. We have not been feared enough. There is a greater urgency than ever to accelerate the European agenda for sovereignty and competitiveness.”
The U.S. has long viewed India as a critical partner in counterbalancing China’s regional influence. Prime Minister Narendra Modi maintains a strong rapport with Trump, and both nations have expressed intent to expand cooperation. However, this new round of tariffs may hinder that trajectory.
Trade figures show a persistent imbalance, last year, the U.S. imported $45.8 billion more in goods from India than it exported, according to the Census Bureau.
India, home to more than 1.4 billion people and a key geopolitical player, has refrained from joining Western sanctions on Russia. Its enduring ties with Moscow now appear to be a liability under Trump’s recalibrated trade posture.
Ajay Sahai, director general of the Federation of Indian Export Organisations, warned that the surprise announcement could undermine India’s market position relative to competitors like Vietnam and Bangladesh. “We are back to square one as Trump hasn’t spelled out what the penalties would be in addition to the tariff,” Sahai noted. “The demand for Indian goods is bound to be hit.”
The additional tariffs also threaten to derail India’s ambitions to double bilateral trade with the U.S. to $500 billion by 2030. Five rounds of trade negotiations have made little headway, with Washington seeking broad market access and near-zero tariffs, while India remains protective of sectors like agriculture and dairy, which support a significant portion of its workforce.
During his February meeting with Modi, Trump had touted India’s future purchases of American oil and natural gas. But during his flight back from Scotland on Tuesday, he was tight-lipped when pressed about the expected 25% tariff, responding: “We’re going to see.”
Back in Washington later that day, Trump suggested no new tariffs would be announced, only to reverse course by Wednesday morning.
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