India, Russia can take their dead economies down together: Donald Trump

Donald Trump lashes out at India's ties with Russia, calls both economies 'dead', warns Russia's Medvedev and announces a 25% US tariff on Indian exports

US President Donald Trump has criticised India’s economic ties with Russia, describing both countries’ economies as "dead".

 

“I don’t care what India does with Russia. They can take their dead economies down together, for all I care,” he wrote on Truth Social

 

Trump also repeated his old complaints about India’s high tariffs, saying that the US has “done very little business with India” for this reason. “Their tariffs are too high, among the highest in the world,” Trump added.

 

Trump also warned former Russian president Dmitry Medvedev against provoking the United States, dismissing any existing trade relationship with Russia. “Russia and the USA do almost no business together. Let’s keep it that way. Tell Medvedev, the failed former President of Russia, who thinks he’s still President, to watch his words. He’s entering very dangerous territory!”

 

 

US hits India with 25% tariff

 

On Wednesday, Trump announced a 25 per cent tariff on all exports from India to the United States, starting August 1. This move also includes a penalty for India’s continued purchases of Russian military and energy equipment.   

 

  The new duties come after India and the US failed to finalise an interim trade deal, despite five rounds of talks. This deal was expected to be a stepping stone toward a broader bilateral trade agreement, which both sides had aimed to conclude by September-October.

 

According to Trump, the penalty is in response to India’s defence and energy transactions with Russia. He stressed that while India is a friend of the US, it still maintains strong economic links with Russia that undermines global efforts to isolate Moscow over the Ukraine war.

 

“Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country,” he wrote on Truth Social.

 

“Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of energy, along with China, at a time when everyone wants Russia to stop the killing in Ukraine — all things not good!”

 

India’s export sector hit amid trade imbalance

 

Trump also pointed to the large trade deficit the US has with India as another reason for the tariff hike. “India will therefore be paying a tariff of 25 per cent, plus a penalty for the above, starting on August first,” he said.

 

India exported goods worth $86.5 billion to the US in FY25, enjoying a trade surplus of $40.8 billion. Currently, Indian exporters pay a 10 per cent base tariff, in addition to WTO-approved duties. The new tariff brings the total levy significantly higher, increasing costs for Indian goods entering the US market.