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President Donald Trump intensifies pressure on India with threats of 25% tariffs over high trade barriers and continued reliance on Russian oil, risking a major setback in US-India trade relations.
India-US Trade Deal at Risk as Trump Pushes for Tariff Hike
President Donald Trump has issued a stern warning to India just days ahead of the August 1 deadline, threatening 25% tariffs on all Indian imports. This move significantly escalates tensions and jeopardizes months of negotiations aimed at establishing a trade deal between the United States and India.
In a series of social media posts, Trump criticized India’s high tariffs and its persistent trade and energy ties with Russia. He stated that India maintains “the most strenuous and obnoxious non-monetary Trade Barriers of any Country,” and expressed frustration at India’s military and energy purchases from Russia, especially amid global efforts to isolate Moscow over the Ukraine conflict.
Trump’s Focus: Full Barrier Removal, Not Half Measures
According to US officials, Trump is no longer satisfied with partial concessions. His message to India is clear: either eliminate trade barriers entirely, or face economic consequences. Trump’s recent trade deals with Japan and the European Union, which included tariff benchmarks between 15% and 20%, have raised the pressure on Indian negotiators.
Kevin Hassett, Director of the National Economic Council, said the President believes a 25% tariff will “remedy the situation” and eventually push Indian companies to shift production to the US or open their markets further.
India’s Russian Oil Dependency Adds Fuel to the Fire
Trump’s frustration isn’t solely trade-related. He’s also angered by India’s increasing dependence on Russian oil, which undermines the US-led efforts to sanction Russia amid the ongoing Ukraine war. Trump has indicated the possibility of secondary sanctions on nations continuing to buy Russian fossil fuels — with India and China being the top buyers.
India vs Other US Trading Partners: A Quick Comparison
Here’s how India’s trade engagement with the US compares to other recent partners like Japan and the European Union:
| Parameter | India | Japan | European Union |
|---|---|---|---|
| Average Tariff on US Goods | ~20%+ | 15% | 15-18% |
| Energy Imports from Russia | High (35% of supply) | Minimal | Moderate |
| US Market Access Commitments | Partial | Full in key sectors | Broad and expanding |
| Military Ties with Russia | Extensive | Limited | Mostly NATO-aligned |
Internal Turbulence: India’s Dilemma Ahead of Deadline
For India, this comes as a major blow. Trade officials have been shuttling between New Delhi and Washington for months, believing a deal was near. Now, with Trump’s deadline looming and no flexibility in sight, India’s hopes of securing a favorable agreement seem to be fading.
Trump’s hardline stance, coupled with threats of sanctions over Russian oil imports, has forced India into a diplomatic and economic tightrope.
What’s Next for India-US Relations?
As the August 1 deadline approaches, India must decide whether to make drastic concessions or face the consequences of US tariffs and possible sanctions. Either path carries significant implications for trade, energy security, and strategic alliances.
This development may also have ripple effects across other global negotiations involving the US, especially as Trump continues to assert America’s trade leverage even with long-standing partners.
Stay tuned for further updates on India’s response to Trump’s tariff ultimatum and how it may reshape global trade alignments.
(📌 Read more on our [Trade & Economy section])
