Trump Threatens Tariffs on India

WASHINGTON – On Wednesday, President Trump indicated plans to levy a 25% tariff on imports from India starting Friday.

Despite referring to India as a “friend,” Trump expressed frustration over the country’s elevated tariffs on U.S. goods and certain non-monetary trade hindrances that he found “uncomfortable.”

“They also consistently purchase most of their military equipment from Russia and are the biggest energy buyers from them, especially now when we’re trying to halt the ongoing conflict in Ukraine. It’s just not a good situation!” he commented.

This marks India as the initial target for direct repercussions due to its ties with Russia amid Trump’s ongoing trade disputes.

The announcement coincides with Trump’s threats of imposing additional tariffs and potential secondary sanctions against Russia in the coming days, as he holds President Vladimir Putin accountable for the war in Ukraine.

Currently, negotiations are underway as Trump approaches the tariff deadline on August 1. He is pushing for higher fees on nations that have yet to finalize trade agreements with the U.S.

Interestingly, India’s current 25% tariff is slightly reduced from the 26% that Trump slapped on imports during “liberation day” in April. Following that, the U.S. had adjusted its rates down to 10% while engaging in negotiations with various partners, including the EU, the UK, Japan, and Indonesia.

Last year, India imposed an average tariff of 5.2% on U.S. goods, importing a diverse range of products like oil and machinery, while the U.S. maintained an average of 2.4% on imports from India over recent years.

Interestingly, CEO Tim Cook has been contemplating relocating up to 25% of mobile phone production away from China, which raises the question of whether India’s tariffs are a tactic to persuade Apple to shift iPhone manufacturing back to the U.S.

In March, Trump relayed a message to Cook, making it clear, “Tim, we’ve treated you really well. We’ve tolerated your production in China for years, but now it’s time you produce for us. We’re not keen on having you set up in India; India can manage just fine…”

It’s somewhat surprising that India’s high tariffs persist, particularly considering the rapport between Trump and Indian Prime Minister Narendra Modi, especially after their discussions about trade agreements back in April of Trump’s first term.

Vance indicated on April 21 that he and Modi would soon finalize a “roadmap” for trade, hinting at an impending solid agreement.