Trump announced 25 per cent tariffs and a “penalty” on India for buying Russian oil and arms saying, “They (India) 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!”

He also said India had “far too high” India export penalties or the US as he justified his decision on slapping tariffs against the country. Trump’s announcement came a day before August 1, the deadline he had set to impose reciprocal tariffs. Trump said the tariffs he announced for India would come into effect on August 1.

Details on the penalty on India are still awaited to be announced. A White House official and Trump’s economic advisor has said there will be more details released soon.

The move came after days of suspense over the India-US trade deal and trade talks between the two countries’ representatives in Washington.

In April, this year, Trump had announced 26 per cent reciprocal tariffs on India. The implementation of the levy was put on hold for 90 days. Trump had given a deadline of July 9 to the country.

The deadline was later extended to August 1 and the US had started announcing Trump new tariffs India for many countries after that. Eyes were on the US-India trade tensions after the US President had said the trade deal was close to being finalised.

Ending suspense over it, US official on India tariffs announced 25 per cent tariffs for India, saying more penalties would be also be added.

“Rahul Gandhi had already warned about this. This is going to affect our economy, exports, production and consequently our jobs and employment. We export pharmaceuticals to US and with a 25% tariff, they will become costlier and will reduce demand. This will ultimately lead to less production and lower employment,” Shrinate said.