‘Partially BRICS, partially trade’: Trump reveals TWO reasons why he slapped 25% tariff on India, then calls Modi a ‘friend’

Hours after announcing a 25% tariff and penalty on India, US President Donald Trump said on Wednesday (July 30) that negotiations with New Delhi are still ongoing. During a press conference at the White House, Trump was asked about the new penalty imposed on India for “supporting” Russia and whether other countries might face similar action. In his response, Trump appeared to link the move to India’s membership in BRICS, a group of eleven emerging economies that includes Russia and China.

“Well, we are negotiating right now and it’s also BRICS. BRICS, which is basically a group of countries that are anti the United States and India is a member of that if you can believe it…It is an attack on the dollar and we are not going to let anybody attack the dollar. So it’s partially BRICS and it’s partially trade,” he said. Apart from India, the BRICS bloc includes Brazil, Russia, China, South Africa, Saudi Arabia, Egypt, UAE, Ethiopia, Indonesia, and Iran.

Trump says India has one of the world’s highest tariffs

Despite referring to Prime Minister Narendra Modi as a “friend”, Trump criticised India’s trade practices, calling the country one of the highest-tariff nations globally. “We had a tremendous deficit. As you know Prime Minister Modi is a friend of mine, but they don’t do very much business in terms of business with us. They sell a lot to us, but we don’t buy from them. You know why? Because the tariff is so high,” Trump said.

He added that India is now willing to cut tariffs “very substantially”, but negotiations are still in progress. “We are talking to India now. We will see what happens. It doesn’t matter too much whether we have a deal or we charge them a certain tariff. But you will know at the end of this week,” he added.

Is a trade deal still possible?

When asked directly whether he is open to negotiating the tariff decision with India, Trump confirmed that talks are ongoing. “We are talking to them now. We will see what happens. India was the highest or just about the highest-tariff nation in the world…We will see. We are negotiating with India right now,” he said.

India responds to Trump’s 25% tariff decision

In response to the US move, the Indian government said it is reviewing the announcement and considering its implications. “India and the US have been engaged in negotiations on concluding a fair, balanced, and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective,” the Ministry of Commerce and Industry saidinastatement.