Trump slaps 25% tariff on India plus penalty, cites Russia business, trade barriers

India Today

US President Donald Trump announced a 25% trade tariff on India, set to begin on the 1st of August. The announcement comes after prolonged negotiations between the two countries.

Transcript

00:00All right, big story that we're breaking at this hour,

00:08a big announcement that has come in from President Donald Trump

00:11on 25% rate tariff on India.

00:15Finally, that announcement has been made.

00:17Donald Trump has spoken about it, and I quote him,

00:19remember, while India is our friend,

00:21we have over the years done relatively little business with them

00:25because their tariffs are far too high,

00:27among the highest in the world,

00:29and they have the most strenuous and obnoxious non-monetary trade barriers of any country.

00:35Also, they've always bought a vast majority of their military equipment from Russia

00:39and Russia's largest buyer of energy, along with China.

00:43At a time when everyone wants Russia to stop the killing in Ukraine,

00:47all things not good, India will therefore be paying a tariff of 25%.

00:52That's the penalty for the above starting on the 1st of August.

00:56Thank you for your attention to this matter.

00:59Make America great again.

01:01That's what Donald Trump has said.

01:03Doing what was expected, however, extremely disappointing for India.

01:0825% tariff in India, something that India has been working very hard to negotiate

01:13for days and weeks, months together, actually.

01:16But the trade deal has now been, in fact, it's been signed along dotted lines

01:20with this announcement coming in of 25% tariff.

01:23Also taking a jibe at India for doing business with Russia.

01:27I'll be going across to my colleagues from India Today Global in a moment from now.

01:32But for the moment, first to Karishma Asudhani, my colleague from Business Today,

01:36for the very latest on that.

01:38Karishma, disappointing but expected, isn't it?

01:40Absolutely disappointing.

01:44In fact, this is not something that you're expecting, especially after the UK FDA that

01:49was recently signed, where India's Commerce Minister has been reiterating that a fine

01:55example was set, a foundational example was set for the US to negotiate with India.

02:02But it looks like India's substance of not compromising on its sensitive sectors of agri, dairy

02:09and genetically modified crops has led this 25% tariff on India.

02:18This is not going to go a long way.

02:20In fact, I was speaking to an economist today and he predicted that this sentiment was going

02:25to pull the APAC market down for a while.

02:28Because after China, if there was something that the world was looking forward to in terms

02:34of a transitional corridor for supply of goods to the US and from the US to APAC, then

02:41that was India.

02:43But with 25% tariff, this is not going to go a long way.

02:47But I also want to give a parallel perspective to this.

02:52And this is to check our export baskets to the US.

02:55If we look at our export baskets to the US, then people pharmaceutical aside, we are not

03:00much in terms of exporting and that could save up from some kind of implications that are

03:07about to come.

03:08But if Donald Trump goes ahead and puts some kind of tariff on pharmaceuticals, then that

03:14will be something to look forward to because that will put us in a major trade deficit going

03:19to the fact that our pharma exports are maximum to the US.

03:23That's right, I'm going to talk to you about that and what's the kind of impact that's

03:26going to have on products that is being bought and sold.

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