President Donald Trump said the United States will levy a 25% tariff on all goods imported from India beginning 1 August, intensifying pressure after months of stalled trade negotiations. He also threatened an unspecified penalty tied to New Delhi’s purchases of Russian energy and arms, and its membership in the BRICS grouping, calling India’s existing import barriers “obnoxious.” Speaking later at the White House, Trump left open the possibility of a reprieve, noting that talks continue and that India is “willing to cut” its own duties. Washington has long criticised New Delhi’s average 39% tariff on agricultural goods and other non-tariff hurdles. A decision, the president said, will come by the end of the week. The proposed levy would apply to roughly $87 billion of Indian shipments ranging from textiles and footwear to electronics, pharmaceuticals and jewellery. Exporters warn the higher duty will make their products uncompetitive against rivals from Vietnam and China, while some analysts estimate India’s GDP growth could take a 0.5-percentage-point hit if the measure stays in place. Financial markets reacted swiftly. Nifty 50 futures traded in GIFT City slipped as much as 0.5%, erasing earlier gains, while the rupee weakened toward a record low, with one-month USD/INR climbing to 88. The MSCI India ETF listed in New York fell more than 1%. India’s commerce ministry said it is assessing the U.S. move and remains committed to a “fair, balanced and mutually beneficial” accord. The United States currently runs a $45.7 billion goods trade deficit with India; the planned tariff would exceed the 20% rate Washington recently set for Vietnam and the 15% floor applied to European Union exports, underscoring the strain on a partnership the U.S. also views as a strategic counterweight to China.