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Trump slaps 25% tariff on Indian goods, calls Brics ‘anti-US’, warns of penalty over Russia ties

Reaffirming ties with Modi, US President slams India over trade imbalance, Brics alignment and Russian oil deals; India pushes back and vows to protect local interests.

Amin Masoodi 31 July 2025 06:29

US President Donald Trump and PM Modi

In a sharp escalation of trade tensions, US President Donald Trump on July 30 announced a 25% tariff on Indian imports, accompanied by additional penalties over India’s continued energy and defense ties with Russia. Despite the sweeping measures, Trump said Washington and New Delhi remain in ongoing negotiations.

Speaking at a press conference at the White House, Trump slammed India as one of the world’s highest tariff-imposing nations, citing rates as high as “175%.” He accused India of maintaining a deeply imbalanced trade relationship that disadvantages American exporters.

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“They sell a lot to us, but we don't buy from them. You know why? Because the tariff is so high,” Trump said. “Now they're willing to cut it very substantially. But we'll see what happens.”

Brics criticism and dollar defense

In a notable departure from past rhetoric, Trump publicly linked India’s growing role in the Brics alliance — comprising Brazil, Russia, India, China, and South Africa — to what he termed a concerted attempt to undermine the US dollar and global American influence.

“Brics is basically a group of countries that are anti-United States, and India is a member of that—if you can believe it,” Trump said. “It’s an attack on the dollar, and we’re not going to let anybody attack the dollar.”

While reaffirming personal ties with Prime Minister Narendra Modi, calling him a “friend,” Trump signaled little hesitation in enforcing the tariffs, adding that India’s behavior on trade and its alignment with Russia left the US with no choice.

Trump’s online tirade targets energy and defense ties

Earlier in the day, Trump expanded on his stance via a Truth Social post, declaring that the tariffs will take effect on August 1. He accused India of erecting “obnoxious” non-monetary trade barriers and criticized its long-standing military purchases from Russia.

“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,” Trump wrote. “India will therefore be paying a tariff of 25%, plus a penalty.”

India vows to protect domestic interests

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India responded cautiously but firmly, asserting that it remains committed to a “fair, balanced, and mutually beneficial” trade deal with the United States. The government also signaled its intent to protect key domestic sectors.

“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,” New Delhi said in a statement. “India will take necessary steps to protect the interests of our farmers, entrepreneurs, and MSMEs.”

Trump’s tariff move, which comes amid election-season messaging in the US, is expected to test the resilience of bilateral ties and may reshape trade dynamics between the world’s two largest democracies.

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