US President Donald Trump on Wednesday reaffirmed that trade negotiations with India are ongoing, even as he announced 25 per cent tariffs and additional penalties on Indian imports, citing high tariffs, Russian oil purchases, and India’s participation in the BRICS grouping.

Speaking at a White House press conference following the signing of a Congressional bill, Trump said,

“We’re talking to them now. We’ll see what happens. India was one of the highest tariff nations in the world, with tariffs reaching 100, 150, even 175 per cent. They sell a lot to us, but we don’t buy from them because their tariffs are so high.”

Tariffs Effective August 1

Trump reiterated that the new 25% tariff and penalties related to India’s continued purchase of Russian oil would take effect starting August 1. He stressed that while India is considered a friend, the trade imbalance and high tariff barriers have long been a problem for Washington.

On his Truth Social account earlier in the day, Trump wrote,

“Remember, while India is our friend, we have done relatively little business with them because their tariffs are far too high, among the highest in the world. They also have the most strenuous and obnoxious non-monetary trade barriers of any country.”

Trump criticized India’s heavy reliance on Russian military equipment and energy, stating,

“India is Russia’s largest buyer of energy, along with China, at a time when the world wants Russia to stop the killing in Ukraine. Therefore, India will be paying a tariff of 25% plus a penalty for the above, starting on August 1.”

BRICS and “Attack on the Dollar”

During the briefing, Trump also targeted the BRICS grouping, which includes India, Brazil, Russia, China, and South Africa, describing it as “anti-United States.”

“They have BRICS, which is basically a group of countries that are anti-United States, and India is a member of that. It’s an attack on the dollar, and we’re not going to let anybody attack the dollar,” Trump stated.

He clarified that the penalty on India is partly due to its BRICS membership and partly because of the ongoing US trade deficit.

Negotiations Continue Despite Tariffs

Despite the new tariffs, Trump emphasized that negotiations with India are continuing and that Prime Minister Narendra Modi remains a “friend.” He hinted that India may agree to reduce tariffs substantially, but stressed that the outcome would be clear by the end of the week.

“Prime Minister Modi is a friend of mine, but they don’t do much business with us. They have one of the highest tariffs in the world. Now they’re willing to cut it very substantially, but we’ll see what happens. It doesn’t matter too much whether we have a deal or whether we charge them a certain tariff. August 1st is a very big day for this country because money is going to pour into the United States like we’ve never seen before,” Trump added.

Context: Previous Tariff Moves

This announcement follows an earlier move on April 22, when Trump imposed a 26% tariff on Indian goods imported into the US, before pausing those reciprocal levies. The latest decision indicates a hardline stance aimed at reducing the US trade deficit while reinforcing his MAGA (Make America Great Again) economic agenda.