US President Donald Trump on Wednesday (July 30, 2025) that imports from India from 1 August, “plus punishment”, tells Indian purchases of energy and military equipment from Russia on Wednesday (July 30, 2025), attracts imports from India and “strenuous and unpleasant” disease barriers from India.
A few hours later, the Ministry of Commerce and Industry stated that the government “studying the consequences” of Mr. Trump’s announcement and “takes all the steps necessary to ensure our national interest”.
India and the US have been negotiating a potential bilateral trade agreement (BTA) since February, when the joint statement of Prime Minister Narendra Modi and Mr. Trump said that such an agreement had concluded autumn 2025.
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No mini-deal
In addition to this comprehensive agreement, negotiators from both countries are also trying to develop a “mini-deal” that would return the retaliation tariffs that Mr. Trump announced for India and many other countries.
However, this mini-deal has not yet been completed. The declaration of US sales representative Jamieson Greer also indicated on Monday (July 28, 2025) that negotiations with India could exceed 1 August, set by Mr. Trump. However, it seems that the statement of the US President on Wednesday (July 30, 2025) confirms that such a mini-deal is not going.
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“Strenuous and unpleasant”
“Remember, while India is our friend, over the years we have carried out relatively few trades with them, because their tariffs are too high, among the highest in the world, and have the most strenuous and unpleasant non -monetary trade barriers of any country,” Trump wrote on the Social Media platform.
“They have always bought the vast majority of their military equipment from Russia and are the largest Russian energy buyers, along with China, at a time when everyone wants Russia to stop killing in Ukraine – all things that are not good! India will pay 25%for the above.
This rate of tariffs is marginally lower than the former 26% tariff that Mr. Trump threatened to choose imports from India. However, another “fine” is now an unknown factor, because Mr. Trump did not specify what form he would take.
“Study of Consequences”
In its statement, the Ministry of Trade stated that the government took note of Mr. Trump’s statement of bilateral trade. “The government is studying its consequences. India and the US have been involved in negotiations on the closure of a fair, balanced and mutually beneficial bilateral trade agreement in the last few months. We continued to commit to this goal.
“The government will take all the steps necessary to ensure our national interest, as was the case with other commercial agreements, including the latest comprehensive economic and business agreements with Great Britain,” he added.
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Retaliation
At the beginning of April, the US President imposed a retaliatory “day of liberation” for imports from most countries in the world and claimed that these countries had deposited much higher tariffs on US goods than the US on imports from them. He then announced a 90 -day break to resolve the bilateral trade agreements with several of these countries.
At the end of the 90 -day break in July, Mr. Trump further expanded this window to 1 August. During this period, he issued letters to at least 14 countries in which tariffs that would be imposed on imports.
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Closing the Trump Trades
Over the last month, he has also concluded agreements with the United Kingdom (Great Britain), Indonesia, Philippines, Japan and the European Union. Agreement with Great Britain will see the export of a British car to the US to attract 10% tariff, a decline in previous 27.5% and removal of tariffs to an aviation exports to the US
Indonesian export to the US now attracts 19% tariff in its agreement with the US, just as it will be charged by US imports from the Philippines. Japan agreed lower tariffs of 15% for their exports to the US, as well as the European Union.
Published – July 30, 2025 17:07
