India-US trade deal stalemate: Amidst the ongoing deadlock in bilateral trade agreement talks US President Donald Trump has announced 25% tariffs on Indian exports into America. Trump has also announced an additional penalty for India due to its extensive purchases of crude oil and defence equipment from Russia.
Trump announced the tariff rate for India on social media platform Truth Social. Trump posted, "Remember, 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. 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! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!"
Donald Trump Tariffs: Where Does India Stand?
While the 25% tariff rate is a 1% less than the 26% announced by Trump in April, it is still on the higher side compared to what other countries will have to face. So where does India stand in the Trump tariff table for the world? We take a look: Trump has recently announced trade deals with Indonesia, Vietnam, Japan, European Union, and Philippines. All these countries face a tariff rate of no higher than 20%. Japan and the EU have managed to get a 15% tariff rate, which Trump has indicated could be the new baseline.
India’s tariff rate, though not the highest, is still on the higher side compared to other countries. China currently faces a 30% tariff rate, as talks on a trade deal continue. US and China have agreed to extend their trade truce beyond August 12 after a recent meeting between US and Chinese officials. According to officials, the final decision on trade truce extension will be taken by Trump.
It's important to note that the trade negotiations between India and the US are continuing with a sixth round of talks slated for August-end when a US team will visit India. According to a Reuters report, India had been bracing for tariffs in the 20-25% range. Government sources quoted by the news agency had said that even if a 25% tariff is announced, it is likely to be temporary in nature since the first phase of the trade deal is expected to be finalised in the coming months.
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Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
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