'PM Modi is a friend, but...': Donald Trump links India to anti-dollar BRICS, says 'we’ll see what they do'
Trump’s administration imposed a 25% tariff on Indian goods, with an unspecified penalty tied to India’s energy and defense ties with Russia.
- Jul 31, 2025,
- Updated Jul 31, 2025 8:44 AM IST
The U.S. and India are still in trade talks, President Donald Trump said but that didn’t stop him from accusing New Delhi of abusing the relationship and aligning with anti-American powers.
In the same breath that he called Prime Minister Narendra Modi “a friend,” Trump unveiled a 25% tariff on Indian imports and threatened further penalties tied to India’s role in BRICS.
“They sell a lot to us, but we don’t buy from them,” Trump said from the White House. “Because the tariff is so high. They have one of the highest tariffs in the world.”
The announcement marked a sharp escalation in trade tensions. Trump cited India’s “obnoxious non-monetary trade barriers” and its membership in BRICS—a bloc he labeled hostile to U.S. interests.
“BRICS is basically a group of countries that are anti the United States,” Trump said. “It is an attack on the dollar, and we are not going to let anybody attack the dollar.”
Trump’s administration imposed a 25% tariff on Indian goods, with an unspecified penalty tied to India’s energy and defense ties with Russia. While the details of the additional penalty remain unclear, the administration’s posture is shifting toward confrontation, even as talks continue.
“They are willing to cut [tariffs] very substantially,” Trump added, but cautioned, “We’ll see what happens… You’ll know by the end of this week.”
India’s BRICS involvement appears to be a key sticking point. The bloc includes Brazil, Russia, China, and South Africa, all of whom Trump views as challenging U.S. dominance, particularly by undermining the U.S. dollar’s global standing.
The fallout from the tariff threat is already visible. Indian exporters, particularly in auto parts and gems, are sounding the alarm. The Gem & Jewellery Export Promotion Council called the move “deeply troubling.” Analysts say Indian firms could lose their pricing edge in the U.S. market if the penalties hold.
As the deadline nears, all eyes remain on whether diplomacy or escalation will define the next chapter in U.S.-India trade.
The U.S. and India are still in trade talks, President Donald Trump said but that didn’t stop him from accusing New Delhi of abusing the relationship and aligning with anti-American powers.
In the same breath that he called Prime Minister Narendra Modi “a friend,” Trump unveiled a 25% tariff on Indian imports and threatened further penalties tied to India’s role in BRICS.
“They sell a lot to us, but we don’t buy from them,” Trump said from the White House. “Because the tariff is so high. They have one of the highest tariffs in the world.”
The announcement marked a sharp escalation in trade tensions. Trump cited India’s “obnoxious non-monetary trade barriers” and its membership in BRICS—a bloc he labeled hostile to U.S. interests.
“BRICS is basically a group of countries that are anti the United States,” Trump said. “It is an attack on the dollar, and we are not going to let anybody attack the dollar.”
Trump’s administration imposed a 25% tariff on Indian goods, with an unspecified penalty tied to India’s energy and defense ties with Russia. While the details of the additional penalty remain unclear, the administration’s posture is shifting toward confrontation, even as talks continue.
“They are willing to cut [tariffs] very substantially,” Trump added, but cautioned, “We’ll see what happens… You’ll know by the end of this week.”
India’s BRICS involvement appears to be a key sticking point. The bloc includes Brazil, Russia, China, and South Africa, all of whom Trump views as challenging U.S. dominance, particularly by undermining the U.S. dollar’s global standing.
The fallout from the tariff threat is already visible. Indian exporters, particularly in auto parts and gems, are sounding the alarm. The Gem & Jewellery Export Promotion Council called the move “deeply troubling.” Analysts say Indian firms could lose their pricing edge in the U.S. market if the penalties hold.
As the deadline nears, all eyes remain on whether diplomacy or escalation will define the next chapter in U.S.-India trade.