Trump reiterated that his administration is considering imposing a 25% tariff rate on Indian goods, alongside an additional “penalty” tariff and linked the action to Russia Ties and BRICS Membership.
U.S. President Donald Trump has indicated that final tariff decisions on India are still under negotiation, with potential penalties tied not only to India’s trade surplus and high tariffs but also to its ongoing defense and energy ties with Russia, and participation in the BRICS alliance.
Speaking to reporters on Wednesday, President Trump reiterated that his administration is considering imposing a 25% tariff rate on Indian goods, alongside an additional “penalty” tariff. He clarified that the specifics are yet to be finalised and will be shaped by ongoing negotiations with New Delhi.
“We’re negotiating right now,” Mr. Trump said in response to a question about punitive actions against India for its continuing purchases from Russia. He further added that he expected to speak with Prime Minister Narendra Modi before giving final approval to any bilateral trade package.
Referring to India’s participation in BRICS — a group comprising Brazil, Russia, India, China, and South Africa — Mr. Trump said, “They have BRICS, which is basically a group of countries that are anti-United States, and India is a member of that, if you can believe it.” He claimed the bloc was working against the U.S. dollar, adding, “It’s an attack on the dollar, and we’re not going to let anybody attack the dollar.”
India and the U.S. are currently in talks to finalise a Bilateral Trade Agreement (BTA), initiated during Prime Minister Modi’s White House visit in February. As part of a broader tariff overhaul announced in April, the U.S. proposed a 26% “reciprocal tariff” on Indian goods, which was temporarily suspended while both countries explored a “mini trade deal” expected earlier this month.
Mr. Trump expressed frustration with what he called a one-sided trade relationship. “India sells a lot to us, but they don’t buy much. Their tariffs are among the highest in the world,” he said. U.S. trade data shows that India enjoyed a trade surplus of $41.18 billion with the U.S. in the previous fiscal year.
Despite his criticism, President Trump described Prime Minister Modi as a “friend” and said discussions were ongoing. “Now they’re willing to cut it [the trade surplus] very substantially. But we’ll see what happens. Whether we strike a deal or levy tariffs, you’ll know by the end of the week,” he said.
Mr. Trump also hinted at a major economic announcement scheduled for August 1, calling it “a very big day” and predicting that “money will pour into the country like never before.”
He confirmed he remained open to further talks with India, but maintained that the outcome — whether a deal or increased tariffs — would soon be decided.
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