WASHINGTON, DC – US President Donald Trump on July 30 said he would be imposing a sweeping 25 per cent tariff on Indian exports starting August 1, casting a shadow over months of trade negotiations between the two countries. The move comes even as Trump referred to India as “our friend,” underscoring the high stakes and simmering tensions in the ongoing talks.

“India will be paying a tariff of 25 per cent starting on August 1,” Trump posted on Truth Social. He also announced additional penalties targeting countries that continue to purchase energy from Russia, with India specifically named among the top buyers.

“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,” Trump wrote. He further accused India of imposing “the most strenuous and obnoxious non-monetary trade barriers of any country.”

India, he said, was not doing enough to align with Western efforts to isolate Russia, saying the country remains Moscow’s largest buyer of energy alongside China. Unless Russia agrees to a ceasefire in Ukraine, Trump warned, a 100 per cent secondary tariff on energy purchases from Russia would take effect from August 7.

Despite his threats, Trump appeared to leave the door open for a breakthrough, suggesting the measures could be a pressure tactic to clinch a last-minute deal. He and his officials, including Commerce Secretary Howard Lutnick, had previously expressed optimism that India would be among the first countries to finalize an agreement. Just last week, Trump claimed that a deal was “imminent.”

India was among the earliest countries to initiate tariff talks with the US, and Commerce Minister Piyush Goyal had said in London last week that discussions were making “fantastic” progress. “I do hope we’ll be able to conclude a very consequential partnership,” he stated.

However, with only a day remaining before the August 1 deadline, the two sides have yet to reach consensus. According to reports, both sides had been aiming for an interim deal ahead of a more comprehensive bilateral agreement that could be signed during Trump’s expected visit to India later this year for the Quad summit.

In response to Trump’s announcement, India’s Commerce Ministry said it had taken note of the US decision and was carefully studying its implications.

“India and the US have been engaged in negotiations on concluding a fair, balanced, and mutually beneficial bilateral trade agreement over the last few months,” the ministry said in a statement. “We remain committed to that objective. The government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs.”

It added that India would take all necessary steps to secure its national interest, pointing to similar efforts made in other recent trade deals, including the Comprehensive Economic and Trade Agreement with the UK.

One of the primary sticking points in the talks has been the US demand for greater market access for its agricultural products—an issue that directly impacts India’s massive and politically sensitive farming sector.

Trump has already unveiled tariff plans for several other nations if deals are not finalized before August 1: 35 per cent for Bangladesh, 36 per cent for Thailand, and 25 per cent for Malaysia. Countries that have reached agreements with the US, like Japan and the European Union, have reportedly settled for 15 per cent tariffs, while the Philippines and Indonesia agreed to 19 per cent.

Trump ended his post with his signature slogan: “MAGA” (Make America Great Again). Whether this hardball approach yields results or deepens trade frictions remains to be seen as the deadline looms. (IANS)