Washington, August 2025 – Former US President Donald Trump has suggested that he may reconsider the additional 25% tariff imposed on Indian goods over New Delhi’s continued purchase of Russian oil. Speaking at a campaign event, Trump remarked, “Maybe I won’t have to do it,” signaling possible flexibility in his tough trade stance against India.
Background of the Tariff Dispute
- In early August 2025, the United States imposed a 25% penalty tariff on top of an existing 25% duty, effectively doubling the tariff rate to 50% on certain Indian exports.
- The move was linked to India’s energy ties with Russia, with Washington pressing New Delhi to reduce crude imports amid global sanctions.
- India has defended its energy purchases, citing national interest and affordable fuel prices for its population.
Trump’s Statement: A Softer Tone?
Trump’s latest comment indicates he may be open to revisiting the harsh tariff measures if negotiations progress. His remark has raised hopes of a reset in India–US trade relations, though no official rollback has been announced yet.
Impact on India–US Trade Talks
The tariff conflict has already derailed the sixth round of bilateral trade negotiations, originally scheduled for August 25–29, 2025, in New Delhi. Agriculture and dairy market access remain major hurdles, with the tariff issue adding further complexity.
What It Means Going Forward
- For India: Any easing of tariffs would provide relief to exporters hit by steep duties.
- For the US: Recalibrating tariffs could help restore momentum in trade talks while balancing geopolitical concerns.
- For global markets: A thaw in India–US trade tensions could stabilize supply chains and reduce uncertainty.
