President Donald Trump said he would impose 25% tariffs on India starting August 1 and hinted at adding additional penalties on the country's energy purchases from Russia.

In a post on Truth Social on Wednesday, Trump said India has tariffs that are "among the highest in the world, and they have the most onerous and obnoxious non-monetary trade barriers of any country."

"Furthermore, they have always purchased the majority of their military equipment from Russia, and are Russia's largest energy buyer, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE," he added. "Therefore, India Will Pay 25% Tariffs, Plus Fines For The Above, Beginning August 1st."

Trump's announcement comes ahead of the August 1st deadline he set to impose new import taxes on dozens of trading partners. The levies dashed New Delhi's hopes of preferential treatment over its regional peers. India was one of the first countries to engage Washington in negotiations, following Prime Minister Narendra Modi's landmark White House visit in February.

For much of this year, Modi's government had adopted a conciliatory approach toward Trump, overhauling India's tariff structure and offering the US government some trade and immigration concessions. But in recent weeks, New Delhi has shifted to a more hardline stance, as negotiations have stalled over contentious issues like agriculture.

Trump had previously said that a "very big" deal was imminent that would open India's market to US businesses. However, he later reversed his stance, saying on Tuesday that he could hit the South Asian nation with tariffs of 20% to 25%.

Even after these latest tariffs, Indian officials plan to continue negotiating with the US for a bilateral trade deal this fall, Bloomberg News previously reported.

The two sides finalized the terms of reference for the bilateral pact in April, following US Vice President J.D. Vance's meeting with Modi in New Delhi. The preliminary agreement outlines the framework for trade negotiations.

The US is India's largest trading partner and a key export market. New Delhi had tried—but failed to secure a limited trade deal with Washington during Trump's first term.

Two-way trade between India and the US reached $127.9 billion in 2024.

Trump's threat of additional sanctions against India came a day after he officially announced that he was giving Russia a new 10-day deadline to reach a ceasefire with Ukraine in an effort to end the war. The US president has threatened to impose tariffs on Russia, which could take the form of secondary levies that would hit countries that buy Russian exports like oil.

Washington and other countries allied with Kyiv view the oil purchases as a form of tacit support for Russia, which helps strengthen its economy and weaken sanctions. (alg)

Source: Bloomberg