Employees work at a company at Haringhata, India on August 3, 2023.Photo: VCG

US President Donald Trump said on Wednesday the US is still negotiating with India on trade after announcing earlier in the day the US would impose a 25 percent tariff on goods imported from the South Asian country starting on Friday, Reuters reported. 

The tariff, as well as an unspecified penalty announced by Trump in a morning social media post, would strain relations with India, according to Reuters. 

What the penalty would be was not clear, but Trump indicated initially, in a post on the Truth Social website, that the penalty was a response to India buying Russian arms and oil and its "obnoxious non-monetary Trade Barriers," Reuters said. 

In its first response after what some Indian media called as surprise announcement of a 25 percent tariff on goods exported to the US from India, plus a "penalty," the Indian Ministry of Commerce and Industry said it has taken note of the announcement and stressed that India remains committed to negotiating a fair bilateral trade agreement with the US, NDTV reported. 

The Indian Express pointed out that among India's key trade competitors, the US has announced comparatively lower tariffs for Vietnam, while higher duties have been set for Bangladesh and Thailand.

However, some Indian politicians and observers considered that the tariffs will hurt the economic interests of India. 

"In the interest of India, the BJP should try and negotiate a trade deal that is good for Indian manufacturers & farmers, so far they haven't done that," economist Surjit Bhalla and former executive director for IMF for India, Bangladesh, Bhutan and Sri Lanka, was quoted as saying in a report by India Today on Thursday. 

Indian Congress leader Jairam Ramesh took a dig at Indian Prime Minister Narendra Modi over the 25 percent of tariff announcement, India Today reported. 

Ramesh "mocked the bonhomie shared between the two leaders, referencing the 'Howdy Modi' event and other moments of camaraderie, saying, 'All that tariff between him and Howdy Modi has meant little," according to the Indian media report. 

Ramesh added that the PM should take inspiration from Indira Gandhi and stand up to the US President, India Today said. 

While slapping a 25 percent tariff on India, the US called India as a "friend," according to media reports. And the Indian Congress party lashed out at the BJP-led central government minutes, saying that the country is now "bearing the cost of Modi's friendship," the India Times said. 

The US also struck a deal with Pakistan in which Washington will work with Islamabad in developing the South Asian nation's oil reserves, Reuters said. 

The US leader has repeatedly taken credit for the India-Pakistan ceasefire he announced on social media on May 10 after Washington held talks with both sides. India disputes Trump's claims that the ceasefire resulted from his intervention and trade threats, according to Reuters. 

India's position is that New Delhi and Islamabad must resolve problems directly with no outside involvement, Reuters said.