We Are Talking to India Now. You’ll Know at the End of This Week: Trump Links 25% Tariff, BRICS ‘Attack on Dollar’ in New India Remarks

Just hours after slapping a 25% tariff on Indian goods, U.S. President Donald Trump doubled down on his administration’s stance, mixing trade grievances with sharp geopolitical warnings. 

“Prime Minister Modi is a friend of mine,” Trump said in his latest remarks, “but they don't do very much business with us. They sell a lot to us, but we don't buy from them… because the tariff is so high.”

Image Source: Ayushman Sail Nehru on X

The comments, made at a press briefing at the White House, come amid what officials on both sides had privately hoped would be a cooling-off period following the ceasefire fiasco in the Indo-Pacific. 

Instead, Trump’s linkage of the tariff imposition with India’s membership in BRICS has triggered a fresh round of diplomatic tension.

“BRICS… is basically a group of countries that are anti the United States,” Trump said, “and India is a member of that… It is an attack on the dollar and we are not going to let anybody attack the dollar.”

According to Trump, the trade dispute is now “partially about BRICS and partially about trade.” 

While India has indicated a willingness to substantially cut tariffs, Trump was non-committal. “We’ll see what happens,” he repeated, emphasizing that a deal or further penalties were both on the table.

“It doesn’t matter too much whether we have a deal or we charge them a certain tariff. But you will know at the end of this week,” Trump added.

The Indian government has yet to issue a formal response, though sources within the Commerce Ministry described the tone as “unexpectedly hostile given backchannel talks underway.” 

Analysts suggest the dual framing--trade and currency bloc politics--may be a deliberate strategy to pressure India ahead of key BRICS meetings scheduled for later this year.

Meanwhile, markets responded cautiously. Export-heavy Indian stocks dipped in early trading, while the rupee weakened slightly against the dollar amid concerns of escalating trade friction.

The latest developments come just days after India walked back a planned joint maritime drill with the U.S. Navy, citing operational readiness, in a move some read as a de-escalation gesture following the Taiwan ceasefire confusion. 

Trump’s new remarks may now reverse that thaw.

What’s Next?
Whether Trump is bluffing, negotiating, or preparing for a broader economic realignment remains unclear. But one thing is now certain: India–U.S. trade relations are on edge, with the BRICS bloc increasingly in Washington’s crosshairs.