The president of the United States, Donald Trump, announced on Wednesday that a 25 percent trade rate would be imposed to India from August 1 along with an additional penalty for Russian energy purchases in the middle of the Ukraine War.
In publications on its social truth social platform, he said that the United States had a “mass commercial deficit” with India.
In another publication, he said: “Remember, although India is our friend, over the years, we have made relatively few businesses with them because their tariffs are too high, among the highest in the world and have the most expansion and unpleasant non -monetary trade barriers in any country.
“In addition, they have always bought a large majority of their military teams in Russia, and they are the largest energy buyer in Russia, along with China, at a time when everyone wants Russia to stop the murder in Ukraine, all things not good! India, therefore, will pay a 25PC rate, plus a penalty for the above, starting on August 1.”
Previously, he said that a commercial agreement with India had not yet been completed and warned about possible higher tariffs before a deadline on August 1 to seal an agreement.
His comments followed a Reuters Report that India was preparing to accept higher rates of 20-25pc about its exports to the US. In the absence of a commercial agreement, since it remains to offer new concessions before the deadline of Friday.
“India has been a good friend, but India has basically charged more rates, almost more than any other country,” Trump told journalists aboard Air Force One on Tuesday, adding that he would come to an end.
Asked about him Reuters Report, Trump said that a commercial agreement had not been completed and that India could face more pronounced tariffs.
India plans to resume wider commercial conversations with the United States in mid -August when an American delegation must be visited, hoping to seal a comprehensive bilateral commercial agreement of October, Indian officials said.
“The conversations are progressing well,” said an official, added that Trump could issue a tariff order in a “worst case.” The official declined to be identified without authorization to speak with the media.
“But, we assume that it would be (a) temporary measure, considering the five rounds of commercial conversations that have taken place. An agreement will soon be resolved,” said the official.
Trump also reiterated his statement that he helped negotiate the fire to the conflict between India and Pakistan earlier this year, saying that both parties accepted their request.
“That was great,” he said describing his friendship with the prime minister of India, Narendra Modi. India disputes Trump’s claims to negotiate the fire.
Analysts say that Trump’s comments on the Indian-Pakistan conflict have thrown a shadow on commercial negotiations.
On Monday, Trump said that most of the partners who do not negotiate separate commercial agreements would soon face tariffs of 15-20 percent in their exports to the USA. UU., Well above the wide rate of the 10 % imposed in April. His administration will notify about 200 countries soon of his new “World Rate” rate.
The United States Commercial Representative, Jamieson Greer CNBC That India’s conversations require more time, noting that Trump wants good offers, not fast.
India has demonstrated “great interest in opening portions of its market,” although its commercial policy had long focused on protecting internal interests, Greer said.
Piyush Goyal, Minister of Commerce of India, said Reuters Last week, India was making “fantastic” progress in the United States commercial conversations.
Indian officials said New Delhi had offered rates cuts in a wide range of goods and was working to relieve non -tariff barriers.
However, agriculture and dairy products remain, and India is not willing to allow genetically modified soybean imports or corn, or open their dairy sector.
The total trade of bilateral goods reached around $ 129 billion in 2024, with India publishing a surplus of almost $ 46 billion.
The authorities said India was calibrating its strategy amid threats of broader American tariffs aimed at BRICs nations (Brazil, Russia, India, China, South Africa and others), including India, on issues such as drearization and Russian oil purchases.
“We hope to ensure an agreement that gives Indian exporters of preferential access compared to our colleagues,” said a second official of the Indian government, speaking under condition of anonymity.
