Trump threatens India with 25% tariffs starting August 1

USA, July 31. -US President Donald Trump announced on Wednesday that Indian imports will face a 25% tariff starting August 1, and that there will also be a "penalty" for the purchase of Russian oil.

In April, Trump imposed additional customs tariffs on dozens of countries that he postponed for 90 days until early July and again until August 1 to give time for trade negotiations.

So far, only six agreements have been announced: with the European Union (EU), the United Kingdom, and Japan, whose products will face 15% surcharges, and with the Philippines, Vietnam, and Indonesia. But in most cases, no documents have been signed.

Trump stated on his Truth Social platform that he will not announce another extension this Friday, but that the tariffs will go into effect.

Since April, most US trading partners have paid a universal minimum 10% tariff, but starting Friday, all those above that percentage will be subject to tariffs, which Trump calls "reciprocal tariffs." In Mexico's case, it will be 30%, and in Brazil's case, 50% if they don't reach agreements before then.

He has also earmarked a high tariff for India.

"We have little trade with them because their customs tariffs are among the highest in the world and non-tariff barriers are the most detestable," Trump said on Truth Social. "We have a massive trade deficit with India! , he protested.

Trump also noted that India has purchased most of its military equipment from Russia and is among the largest buyers of Russian oil, "at a time when the world wants Russia to stop killing in Ukraine."

And this, according to the president, justifies an additional "penalty" to the 25% tariff, which he did not specify.

The 25% rate announced Wednesday is just one percentage point lower than the 26% he had projected for India in April.

On Tuesday, the US president gave a hint by saying that tariffs on "made in India" products could be between 20 and 25%, but he did not rule out an agreement.

So far, negotiations have not prospered because India is reluctant to fully open its market to US agricultural products.

"Now we will see whether (Indian) exporters or US importers will be able to absorb this additional cost or not," Ajay Sahai, Director-General of the Indian Federation of Export Organizations, told AFP.

"Where we need clarity is about this penalty. Is it a threat? If India continues to import Russian oil, will we be hit with a penalty? And on some products or all?" he asked.

Russian Oil

India is one of the main customers of Russian oil, subject to sanctions, which it acquires at a favorable price.

The US president has toughened his tone in recent days toward his Russian counterpart Vladimir Putin, whom he accuses of not wanting to end the war in Ukraine.

Trump is now threatening countries that buy Russian oil, but also Iranian oil, with "secondary" sanctions, which would come to be additional tariffs on products coming from those countries.

China and India are among the main buyers of Russian oil. (Text and Photo: Cubasí)