US Slaps 25% Tariff on India; New Delhi Keeps BTA Focus

Trump cites India's high tariffs and Russian ties to impose tariffs; India won't retaliate for now

- Dhirendra Kumar

Indian goods arriving in the US will face a 25% tariff plus a penalty due to India's high tariffs, trade barriers, and Russian links, US President Donald Trump said, two days before the pause on reciprocal tariffs comes to an end.

"While India is our friend, we have, over the years, done relatively little business with them because their 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 on his social media platform Truth Social.

The Trump administration's move is expected to hit Indian sectors such as apparel, auto components, leather goods, and certain food exports to the US, where India has built strong market share over the years.

The Union commerce ministry said New Delhi is studying the implications of Trump's remarks. "India and the US have been engaged in negotiations over the last few months to conclude a fair, balanced, and mutually beneficial bilateral trade agreement (BTA). The government remains committed to this objective," the ministry said in a statement.

"The welfare of farmers, entrepreneurs, and MSMEs remains of utmost importance. The government will take all necessary steps to secure our national interest, as has been the case with other trade agreements, including the recently concluded Comprehensive Economic and Trade Agreement with the UK," it added.

Talks had stalled around agriculture, dairy markets, and genetically modified (GM) foods, with India standing firm against opening them to US corporations.