(qlmbusinessnews.com . Thu 31st Jul, 2025) London, UK —
US to Impose New Tariffs and Fines on India Amidst Russian Oil and Arms Purchase Row
The United States has announced that it will levy a 25% tariff on imports from India, alongside an unspecified fine, in response to India's purchases of Russian oil and arms, according to President Donald Trump.
In a statement shared on Truth Social, President Trump declared the new tariffs would be initiated starting 1 August, marking the deadline for the anticipated trade agreement between the two nations. He voiced his concerns about India's “excessively high” tariffs, which he believes are some of the highest globally, despite referring to India as a friendly nation.
The US President also expressed disapproval of India's ongoing acquisition of Russian military equipment and energy supplies amidst global calls for Russia to cease hostilities in Ukraine.
In retaliation, India emphasised its dedication to reaching a “fair, balanced and mutually advantageous bilateral trade agreement.” It's worth noting that the US experienced a trade deficit of $45.8 billion (£26.1bn) with India in the previous year.
This announcement follows Trump's previous declaration back in April, mentioning tariffs up to 27% on Indian imports, which were subsequently paused. The upcoming Friday stands as the latest ultimatum for India and other nations to finalise a trade agreement or confront heightened tariffs.
Tariffs, essentially taxes on imported goods, have been a critical point of contention, with Trump frequently criticising India for its high tariff rates, labelling the nation a “tariff king” and a major “abuser” of trade relations.
India's administration is currently evaluating the implications of Trump's recent declarations, committing to safeguard the welfare of Indian farmers, entrepreneurs, and small businesses, and affirming preparedness to take all necessary measures to protect national interests.
Despite the pressure, negotiations have been ongoing since April, with fluctuating optimism from both parties involved.
Jamieson Greer, the US Trade Representative, hinted at productive but guarded discussions with India, acknowledging the longstanding protectionist stance of India's trade policies aimed at fiercely safeguarding its domestic market.
Agriculture and dairy emerge as significant areas of discussion, with the US pushing for increased access to India's agricultural sector, a suggestion met with strong resistance from India owing to concerns over food security and the welfare of its multitude of small-scale farmers.
Indian Commerce Minister Piyush Goyal, in recent conversations with CNBC and Reuters, revealed India's sensitive stance towards agriculture but remained hopeful about achieving a substantial partnership with the US, highlighting the progress in negotiations.
Historically, the US has been India's premier trade partner, with bilateral trade peaking at $190 billion in 2024. Trump and Indian Prime Minister Narendra Modi have ambitiously aimed to more than double this figure to $500 billion.
While India has made concessions by decreasing tariffs on several goods such as Bourbon whiskey and motorcycles, the US continues to face a $45 billion (£33 billion) trade deficit with India, a gap President Trump is eager to narrow.
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