Washington, 30 July

US President Donald Trump has announced a 25 per cent tariff on India from 1 Aug, amid signs of some stalemate in the ongoing negotiations between the two countries on a bilateral trade deal.

Trump, announcing the tariff, listed India's high tariffs, its procurement of "vast majority" of military equipment and energy from Russia as well as "obnoxious non-monetary trade barriers".

India will be paying a "tariff of 25 per cent plus a penalty" from 1 August, he said, adding "we have a massive trade deficit with India".

The US president, in a social media post, however, described India as a "friend". 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, and they have the "most strenuous and obnoxious" non-monetary trade barriers, he said.

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, he said.

"All things not good! India will therefore be paying a tariff of 25 per cent plus a penalty for the above starting on 1 August," the US president said.

There is no immediate reaction from India on Trump's announcement.

A team from the US is scheduled to visit India next month for the next round of negotiations for the proposed bilateral trade agreement.

India and the US teams concluded the fifth round of talks for the agreement last week in Washington.

India's chief negotiator and special secretary in the Department of Commerce Rajesh Agrawal and Assistant US Trade Representative for South and Central Asia Brendan Lynch held the deliberations.