United States President Donald Trump on Wednesday imposed a 25 per cent tariff on goods imported from India starting August 1, along with an unspecified penalty for buying Russian weapons and oil, potentially straining relations with the world’s most populous democracy.

The US decision singles out India more severely than other major trading partners, and threatens to unravel months of talks between the two countries, undermining a key strategic partner of Washington and a counterbalance to China.

In posts on his social platform Truth Social, he said the US had a “massive trade deficit” with India.

In another post, he said: “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.

“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 will therefore be paying a tariff of 25pc, plus a penalty for the above, starting on August 1st.”

White House economic adviser Kevin Hassett said Trump has been frustrated with how trade talks with India are progressing and believes his 25pc tariff announcement will help the situation.

Trump and US Trade Representative Jamieson Greer will have more information “shortly” on the additional penalty, Hassett told reporters at the White House.

In response, the Indian government said in a statement that it was studying the implications of Trump’s announcements and remained dedicated to securing a fair trade deal with the US.

“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,” it said.

India said it attached the utmost importance to protecting and promoting the welfare of its farmers, entrepreneurs and........

© Dawn Business