President Trump first announced his tariff “Liberation Day” in April, and the measures are now set to take effect tomorrow. While countries like Europe, Japan, and South Korea have capitulated to the Trump administration’s mounting pressure and signed trade deals, others, such as India, remain holdouts.
In response, Trump lashed out on Truth Social media early Thursday morning, labeling India a “dead economy” and claiming the U.S. does “very little business” with the country.
“I don’t care what India does with Russia. They can take their dead economies down together, for all I care,” Trump wrote on his social media platform.
He continued, “We have done very little business with India, their Tariffs are too high, among the highest in the World,” adding, “Likewise, Russia and the USA do almost no business together. Let’s keep it that way, and tell Medvedev, the failed former President of Russia, who thinks he’s still President, to watch his words. He’s entering very dangerous territory!”
On Wednesday morning, Trump fired off another Truth Social post about India, indicating New Delhi faces 25% tariff plus penalties starting on Friday. He criticized India’s close ties to Moscow during the Ukraine war, describing them as “not good,” and emphasized that the U.S. has done relatively little business with India.
It remains unclear whether U.S. and Indian trade negotiators can reach a deal before the deadline. However, Trump’s comments on Truth Social suggest the talks are not going well.
A statement from the Indian government yesterday pointed out that a trade deal with the U.S. must be “mutually beneficial” and protect its farmers and small businesses.
According to analysts at Mumbai-headquartered Axis Bank, 25% tariffs on Indian goods would have a $10 billion impact on exporters.
Société Générale analyst Kunal Kundu said the tariffs could “dampen domestic sentiment” and “expectation of maintaining a relative tariff advantage over competitors in labour-intensive exports has been undermined.” He noted that “disadvantage is not excessively severe.”
“Trump’s causing a lot of trouble for Modi,” said Derek Grossman, a former U.S. intelligence official who is now a professor of international relations at the University of Southern California, who Bloomberg quoted.
“A lot of damage has been done today, more than at any time I can remember,” Grossman added. “I’m not saying that the relationship is going to collapse or anything like that. It’ll persist, but I feel like India will be far more circumspect in dealing with America from this point forward.”
So much for all those signs of progress in April when Vice President JD Vance visited India. Vance at the time called a US-India relationship a “win-win partnership” and sought stronger ties with New Delhi in energy and defense trade.
Important to note: India and Russia are part of the BRICS system, challenging the US status quo.
Related:
. . .
Loading recommendations…
