Donald Trump says tariff negotiations with India on, PM Modi friend, but: ‘They have BRICS…its an attack on dollar’

By Admin

31 Jul, 2025

In a sharp escalation of trade tensions, former U.S. President Donald Trump announced a 25% tariff and penalty on India for its continued import of Russian oil, signaling a renewed focus on protecting U.S. economic and geopolitical interests. While reaffirming that Indian Prime Minister Narendra Modi is a “friend”, Trump expressed deep concerns about India’s association with BRICS, labeling it as “anti-American” and an “attack on the dollar.”

Tariff Penalties and Sanctions

In a statement posted on his platform Truth Social, Trump emphasized that despite friendly ties, India has always maintained “the highest tariffs in the world” and imposed “strenuous and obnoxious non-monetary trade barriers.” Effective August 1, 2025, the U.S. will implement a 25% tariff plus additional penalties on Indian imports linked to Russian oil transactions.

Trump further pointed out that India, along with China, remains Russia’s largest energy customer, even as global pressure mounts on the Kremlin to halt the war in Ukraine. This move echoes a prior action from April 22, when a 26% reciprocal tariff was briefly introduced on Indian goods.

The BRICS Dilemma: ‘An Attack on the Dollar’

Speaking to reporters, Trump highlighted India’s role within the BRICS bloc which includes Brazil, Russia, India, China, and South Africa as a key sticking point in trade negotiations.

“They have BRICS, which is basically a group of countries that are anti-United States. It’s an attack on the dollar, and we’re not going to let anybody attack the dollar,” Trump stated.

He implied that the U.S.-India trade deal is facing delays partly because of India's involvement in what he deems an “anti-US” alliance.

Modi Is a Friend, But...

Despite his criticisms, Trump acknowledged his personal rapport with Prime Minister Modi, calling him a “friend”. However, he quickly qualified that friendship with business realities.

“They sell a lot to us, but we don’t buy much from them because the tariffs are too high. Now they’re willing to cut it very substantially. But we’ll see what happens,” he said.

Trump also claimed that India had tariff rates as high as 175% on U.S. products and said the U.S. is still in discussions to negotiate a better deal.

Sanctions on Indian Companies

Adding to the economic strain, the White House separately announced sanctions on entities associated with Iran’s crude and petrochemical industries. Six Indian companies were among those targeted in this crackdown, reflecting broader U.S. efforts to curb oil trade with nations like Russia and Iran.

What’s Next?

With August 1 looming, Trump hinted that a final decision on trade measures could be seen as early as this week.

“August 1st is a very big day for this country because money is going to pour into the United States like we've never seen before,” he said.

Whether this aggressive stance results in a full-scale trade dispute or renewed bilateral cooperation remains uncertain. But one thing is clear Trump’s America is ready to play hardball, even with its "friends."