US India trade deal update: With just a day left for the August 1 deadline set by the Donald Trump administration to wrap up agreements with its trading partners, the American President on Wednesday announced 25 percent tariffs “plus a penalty” for India.
In a post on his platform Truth Social, Trump said India’s own protectionist policies over the years had meant America had “done relatively little business with them”.
“Also, 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!” he wrote.
However, he did not clarify what exactly the “penalty” would entail beyond the newly announced 25 per cent tariff.
“WE HAVE A MASSIVE TRADE DEFICIT WITH INDIA!!!” he added.
The United States and India have been discussing a trade deal for months, but no final agreement has been reached. Trump has been pressing for greater access for American goods to the Indian market. He has often made similar demands in other trade negotiations.
Trump imposed a 26 per cent tariff on Indian goods, while announcing his ‘Liberation day tariffs’ in April. Although steep, the levy was lower than the total 104 per cent imposed on China, 49 per cent on Cambodia, and 46 per cent on Vietnam.
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