Ahmed Kamel – Egypt Daily News
U.S. President Donald Trump announced on Wednesday the imposition of 25% tariffs on Indian imports, citing New Delhi’s continued defense and energy cooperation with Russia. The new tariffs, along with unspecified financial penalties, are set to take effect this Friday.
In a statement posted on his social media platform Truth Social, Trump said the measures are aimed at penalizing India for purchasing arms and oil from Russia, despite ongoing calls from Western allies to isolate Moscow amid the war in Ukraine.
Additional tariffs, some reaching up to 50%, may also be enacted on the same day, Trump added, warning that the August 1st deadline for compliance “remains fixed and will not be extended.”
This announcement marks a sharp escalation in Trump’s trade strategy. While earlier proposed duties on Indian goods in April reached even higher levels, the finalized 25% rate still exceeds the tariffs applied to most other Asian countries with active trade agreements with Washington.
Stalled Trade Talks and Strategic Frustrations
India, now the world’s most populous nation and a key global economy, had been one of the first countries to engage in trade negotiations with Trump’s administration. However, the talks fell apart after six months, due largely to U.S. demands for broader market access—especially in agriculture—and India’s reluctance to open those sectors.
“India may be our friend, but they’ve imposed some of the highest tariffs and non-tariff barriers in the world,” Trump said in his statement. “And they continue to buy most of their military equipment and a large share of their energy from Russia just like China.”
The former president also signaled that India will face a financial “penalty” in addition to tariffs, although no specific amount or mechanism was detailed.
Trump, 79, has pledged to ramp up economic pressure on Russia and its allies if re-elected, including the use of secondary sanctions against countries that help Moscow bypass Western embargoes. He recently warned Russian President Vladimir Putin of a 10-day ultimatum to de-escalate the war in Ukraine or face new economic consequences.
Global Economic Disruption
The renewed Trump doctrine has already begun to rattle global markets. Analysts fear that a fresh wave of U.S. tariffs could disrupt trade flows and worsen inflationary pressures worldwide.
While India reiterated its intent on Wednesday to continue negotiating “a fair and balanced trade agreement that benefits both sides,” officials in New Delhi have not publicly addressed the potential penalties tied to Russian cooperation.
Beyond India, Trump has laid out tariff frameworks with several other nations, including the UK, Japan, Vietnam, Indonesia, and the Philippines, as well as a broader deal in progress with the European Union. However, his tariff-first approach has drawn criticism for destabilizing international supply chains and damaging diplomatic relationships.
U.S.-China trade talks were also held this week in Stockholm, with both sides reportedly discussing an extension to their current truce. Any new agreement may delay the return of punishing tariffs beyond the August 12 deadline.
Meanwhile, Trump has threatened Brazil with 50% tariffs starting Friday unless authorities halt legal proceedings against former President Jair Bolsonaro, who faces charges related to an attempted coup.
The former president also approved targeted tariffs on specific sectors, including steel, copper, and automobiles.
