US India trade deal update: With just a day left for the August 1 deadline set by the Donald Trump administration to wrap up agreements with its trading partners, the American President on Wednesday announced 25 percent tariffs “plus a penalty” for India.
In a post on his platform Truth Social, Trump said India’s own protectionist policies over the years had meant America had “done relatively little business with them”.
“Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD!” he wrote.
India’s response to Trump
In its first response following Trump’s announcement of new tariffs, India said it had “taken note” of the statement and underlined its continued commitment to a fair bilateral trade agreement with the United States. The government also pointed out that negotiations between the two countries had been underway for several months.
“The Government has taken note of a statement by the US President on bilateral trade. The Government is 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. We remain committed to that objective,” the Ministry said in a statement issued Wednesday evening.
Conclusion :
The recent announcement of 25% tariffs by Donald Trump raises serious concerns for Indian exporters and importers, especially small businesses and startups dealing in U.S. trade. While both countries aim for a balanced deal, the financial and compliance implications could be significant. If your business trades internationally or relies on U.S. markets, consult IndTax Filings today for expert compliance, import-export advisory, and tax support.
