(MENAFN- Gulf Times) India yesterday said it was committed to negotiating a“fair, balanced” trade deal with Washington, after US President Donald Trump said Indian goods would face steep tariffs and New Delhi would be penalised for purchases of Russian weapons and energy.
Months of trade negotiations between India and the US have failed to seal a deal, with sticking points including Trump's sweeping demands and New Delhi's reluctance to fully open its agricultural and dairy sectors.
Two days before Trump's August 1 tariffs deadline, the US president announced that imports from India would be hit with a 25% tariff.
The Indian government said it had“taken note” of Trump's announcement and was“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,” it said in a statement, also noting that it was determined to protect the welfare of Indian farmers and entrepreneurs.“The government will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK.”
“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 of any country,” Trump wrote in a Truth Social post.
“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!”
The White House had previously warned India about its high average applied tariffs – nearly 39% on agricultural products – with rates climbing to 45% on vegetable oils and around 50% on apples and corn.
Russia continued to be the top oil supplier to India during the first six months of 2025, making up 35% of overall supplies.
The US, the world's largest economy, currently has a $45.7bn trade deficit with India, the fifth largest.
White House economic adviser Kevin Hassett said Trump has been frustrated with the progress of trade talks with India and believed the 25% tariff announcement would help the situation. Hassett said more information on the additional penalty would be made“shortly.”
The new US tax on imports from India would be higher than many other countries that struck a deal with the Trump administration recently. Vietnam's tariff is set at 20% and Indonesia's at 19%, while the levy for Japan and the European Union is 15%.

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