he reiterated his intention to impose a 25% tariff on imports from India and threatened additional “punishments” due to energy purchases from Russia. Trump stated that India, despite being a friend, does not engage in favorable trade because of high tariffs and obstructive trade barriers, and that the majority of its military equipment and energy come from Russia, which is problematic given the war in Ukraine.

This escalation follows recent trade agreements with countries like Japan and the EU, which included tariffs of 15-20% and agreements on market access and investments. For India, this represents a major setback after months of negotiations in which American officials initially believed an agreement was close. Recently, deals with other countries have encouraged Trump to negotiate more strictly and to not shy away from higher tariffs. Trump clearly indicates that he is unwilling to make concessions unless barriers are fully removed, complicating negotiations with India.

At the same time, Trump has warned that he may implement secondary sanctions on Russian energy imports, primarily targeting countries like India and China, which remain large buyers. India imports about 35% of its oil from Russia. Late last week, Trump announced that if India does not reach an agreement by August 1, they will face a 25% tariff. He also previously stated that countries buying Russian oil could face sanctions. His advisors emphasize that this measure is serious and not a negotiation tactic. The strategy highlights Trump’s aim to strengthen the US market position and increase pressure on major trading partners and energy suppliers. (CNN)