'India is our friend, but...’: Trump announces 25% tariff, penalty on India

US President Donald Trump on Wednesday said 25 per cent tariff will be imposed on imports from India along with a penalty for buying oil and military equipment from Russia, starting August 1.

“We have a massive trade deficit with India. …ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST,” Trump said on Truth Social.

The US President underlined that “India is our friend” but the US has done relatively little business with New Delhi due to high tariffs.

“…Their (India) Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country,” Trump said.

The US President said India has “always bought a vast majority of military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE”.

Earlier in the day, External Affairs Minister S Jaishankar said in the Rajya Sabha that India is negotiating a trade deal with the US which will serve New Delhi’s interests. “We are negotiating a trade agreement (with US).…we have national interest at heart. We are negotiating an agreement that will serve our national interest," he said.

On Tuesday, Trump had said that imports from India may be hit with a tariff rate of 20 to 25 per cent as the trade deal between the two countries has not been finalised yet.