Donald Trump Hails “Historic Trade Deals” as US Imposes 50% Tariff on Indian Goods; PM Modi Responds

US President Donald Trump announced sweeping trade victories while escalating tariffs on Indian imports to 50%, triggering a strong response from Prime Minister Narendra Modi, who vowed India would stand firm under pressure.

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Washington, August 27: US President Donald Trump on Tuesday declared that his administration had secured “historic trade deals” with some of the world’s biggest economies, while also taking a hard line on India with the imposition of steep new tariffs.

Addressing reporters, Trump said:
“We have secured historic trade deals with the United Kingdom, China, Indonesia, Vietnam, the Philippines, Japan, South Korea, and the European Union. Foreign nations are now paying hundreds of billions of dollars straight into our treasury… We are receiving trillions of dollars, far beyond billions.”

The bold claim came just hours before the US Customs and Border Protection (CBP) released a draft notice confirming 50% tariffs on Indian goods, effective 12:01 a.m. EDT on August 27.

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Tariffs on Indian Imports

The draft notice, issued under Executive Order 14329 signed on August 6, directed changes to the Harmonized Tariff Schedule of the United States (HTSUS) to implement higher duties.

The escalation follows Trump’s earlier announcement on July 30, where he had warned of 25% tariffs on Indian imports, citing New Delhi’s “extremely high tariffs” and “obnoxious non-monetary trade barriers.”

In a fiery Truth Social post, Trump wrote:
“Remember, while India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high… 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. India will therefore be paying a tariff of 25%, plus a penalty for the above, starting August 1st. MAGA!”

With the latest move, the penalty has now doubled, further straining the trade equation between the two countries.

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India’s Firm Response

Prime Minister Narendra Modi responded with resilience ahead of the tariff hike, making it clear that India would not bow under external pressure. Speaking at a public event in Ahmedabad on Monday, he said:

“No matter how much pressure comes, we will keep increasing our strength to withstand it. Today, the Atmanirbhar Bharat Abhiyan is getting a lot of energy from Gujarat, and behind this are two decades of hard work.”

His remarks underline India’s push towards self-reliance (Atmanirbhar Bharat) as a shield against growing global trade challenges.

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What This Means for US-India Relations

The sudden escalation adds a fresh chapter in the complex trade ties between Washington and New Delhi. While Trump touts victories in sealing trade deals with allies like the UK, Japan, and the EU, the standoff with India highlights persisting tensions over tariffs, defense partnerships, and energy imports from Russia.

With India continuing to assert its independent foreign policy and economic path, and the US pressing ahead with punitive tariffs, all eyes will now be on how both nations navigate the evolving trade battlefield in the months to come.