WASHINGTON — In a move that could upend years of deepening diplomatic and economic ties, former U.S. President Donald Trump on July 30 announced sweeping new tariffs on Indian exports and warned of impending penalties on New Delhi’s defense and energy purchases from Russia, reported by Daily Hurriyet News.
The 25% tariff, effective August 1, applies to a broad swath of Indian goods shipped to the United States—valued at $87.4 billion in 2024—including key sectors like pharmaceuticals, textiles, gems, and smartphones. Additionally, Trump signaled an unspecified “penalty” aimed at India’s continued military and oil cooperation with Moscow.
The announcement comes amid stalled negotiations on a long-awaited trade pact. Talks faltered as Trump demanded greater access to India’s agricultural and dairy markets—demands New Delhi has been unwilling to meet. Analysts warn the new tariffs could derail prospects for any future agreement.
“It was already a difficult negotiation,” said Biswajit Dhar of the Council for Social Development. “Now, the tariffs and this so-called penalty threaten to make talks untenable. Sovereign nations don’t respond well to ultimatums.”
Experts believe the moves could significantly damage the U.S.-India relationship, cultivated over decades as Washington positioned India as a democratic counterweight to China.
“This could be the most fragile moment in bilateral ties since the mid-1990s,” noted Ashok Malik of The Asia Group.
International Crisis Group’s Praveen Donthi echoed the sentiment: “Trump makes no distinction between allies and adversaries when wielding tariffs. His unpredictability could push India closer to Beijing.”
In a separate development, Trump also announced a 15% tariff on South Korean imports, even as he hailed a “full and complete” trade deal with Seoul. He further cast doubt on trade talks with Canada, criticizing its support for Palestinian statehood.
“Very hard to do a deal with Canada now,” he wrote on Truth Social. “Oh, Canada!!!”
