'In the next 24 hours...': Trump issues 2nd tariff threat in 24 hours as India pushes trade talks with US

Continuing his tirade against India, US President Donald Trump has now threatened to impose substantially higher tariffs on India in the next 24 hours. A day after he launched a fresh salvo at India over Russian oil imports, Trump told CNBC today: "I think I am going to raise India's tariffs substantially in the next 24 hours."

Late on Monday night, the Indian government had issued a strong rebuttal against Trump’s threats, saying that the US is unfairly targeting India when the US and EU's Russian imports are much higher than India's.

India, meanwhile, tried to calm the nerves today, saying it is actively involved in the discussions on the India-USA Bilateral Trade Agreement (BTA) with the government of the United States. Answering a query in the Lok Sabha, Minister of State for Commerce & Industry, Jitin Prasada, said the Modi government aims to expand trade and investment and deepen the India-US trade relationship to promote growth that ensures "fairness, national security and job creation".

The India-US bilateral Trade Agreement negotiations were launched in March 2025. Five rounds of negotiations have been held, the last being from July 14-18, 2025, in Washington, USA. The sixth round of talks is expected to happen at the end of August.

On being asked if the government has conducted any assessment on the potential negative impact of the proposed FTA on India's agricultural sector, particularly on small and marginal farmers, Prasada said there are rules that protect the interests of the domestic industry. "To safeguard the interests of farmers and the domestic industry, international trade negotiations allow for the inclusion of sensitive, negative, or exclusion lists—categories of goods on which limited or no tariff concessions are granted. In addition, in case of a surge in imports and injury to the domestic industry, a country is allowed to take recourse to trade remedial measures such as anti-dumping and safeguards on imports within the periods as mutually agreed to by the parties under FTAs."

Prasada's comments came after the Ministry of External Affairs, in a statement on Tuesday, said despite the Russia-Ukraine war, both the European Union and the US continue to have strong trade ties with Russia, and that India began importing from Russia as traditional supplies were diverted to Europe after the outbreak of the conflict.

Saying that “targeting of India is unjustified and unreasonable”, the ministry said the US has been importing materials from Russia, including uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilisers, as well as chemicals, while the European imports of LNG in 2024 touched record levels.

The government said the European Union in 2024 had a bilateral trade of Euro 67.5 billion in goods with Russia. In addition, it had trade in services estimated at Euro 17.2 billion in 2023. This, it said, is significantly more than India’s total trade with Russia that year or subsequently. "European imports of LNG in 2024, in fact, reached a record 16.5mn tonnes, surpassing the last record of 15.21mn tonnes in 2022."

In his post on Truth Social yesterday, Trump accused India of buying "massive amounts of Russian oil" and selling it further in open markets. He said India is not only buying massive amounts of Russian oil, but they are then, for much of the oil purchased, selling it on the Open Market for big profits. He said India does not care how many people in Ukraine are being killed by the Russian War Machine.

Trump has already announced a sweeping 25% tariff on all Indian goods exports to the US, effective August 1, and an additional "penalty" on India for indulging in business with Russia in areas of energy and military equipment.

Trump's statements against India come amid the government's clear stance on keeping the national interest at the top of its priority while discussing bilateral trade terms with the US. The central government on July 30 said it is studying its implications, and that India remains committed to achieving a "fair, balanced and mutually beneficial" trade deal.

Though Trump has made his intentions on imposing tariffs on India clear, trade experts here say these measures could be temporary as the talks between both countries are still on, with the sixth round scheduled for the end of August. Some experts, however, estimate Trump's tariffs on India could disrupt around $129 billion worth of trade between the two nations per year, with smartphones, pharmaceuticals, shrimp and auto parts expected to take the biggest hit.

Notably, India has already signed a mega trade deal with the UK, which allows zero-duty access to 99% of India’s exports to the United Kingdom. The agreement is expected to see bilateral trade between the two countries double from the current $56 billion in the next five years.