Trump Hints at 20-25% Tariffs on India Ahead of Key Deadline, Calls Trade Talks “Very Good”

US President Reasserts Stance on High Indian Tariffs, While India Expresses Confidence in Bilateral Trade Agreement Progress

Washington, D.C. US President Donald Trump said on Tuesday that India could face tariffs of 20 to 25 percent. This comes only days before a self-imposed August 1st deadline for additional duties. Even if this threat is getting closer, Trump said that the ongoing discussions for a trade deal between India and the US are “working out very well.” He also said again that he believes India has put tariffs on US goods that are too high compared to those of other countries.

Trump talked about claims that India was ready for such levies during a press conference on Air Force One. He stressed that these kinds of problems would stop happening under his leadership. “India has been a good friend.” But over the years, India has charged the greatest tariffs of any country. But now I’m in command. And you just can’t do that. I believe that the trade agreements are going quite nicely. The US President said, “Hopefully for everyone, but for the United States, they’re very, very good.”

Unlike with some other countries, Trump has not yet given India formal letters announcing the new tariffs. Trump had put a 26 percent tax on Indian goods coming into the US on April 22nd, calling it “reciprocal.” He then said that these taxes would be put on hold.

Indian officials, on the other hand, have stayed positive about the trade talks. Piyush Goyal, the Union Minister for Commerce, said on Sunday that the trade talks between India and the US were going “very well.” “India is now negotiating from a place of strength and confidence.” This trust is what keeps us making solid free trade deals all the time… Goyal said, “Our talks with the United States are going very well.”

Foreign Secretary Vikram Misri said that India is also actively talking with the US on a possible Bilateral Trade Agreement (BTA). This was during Prime Minister Modi’s visit to the UK last week to sign the India-UK Free Trade Agreement. He stressed that they are still in touch with partners in the US. Misri said at a press conference, “We are talking about that in a different vertical.” All I can say is that we are getting married. We’re in the middle of making contacts, and we’ll see how it goes.

On July 14, a high-ranking government official said that India was making real progress toward negotiating a BTA with the US. Both nations were determined to implementing the framework set out by their leaders. The official stressed that India is “moving in terms of a BTA” and is actively “looking at a mutually beneficial deal” that would be good for both countries.

Trump also took the chance on Air Force One to once again take credit for his part in brokering the ceasefire agreement between India and Pakistan after the recent conflict in May. The April 22nd terrorist bombings in Pahalgam, which killed 26 people, and India’s retaliation, “Operation Sindoor,” which involved precise operations on nine terrorist camps in Pakistan and Pakistan-occupied Jammu and Kashmir (PoJK), started the conflict. Trump also praised India’s leadership under Prime Minister Narendra Modi for helping to keep the region stable.

“Listen, India, they’re my pals, and PM Modi is my friend. They terminated the conflict with Pakistan by request, and I was fantastic, and Pakistan was great too. “We made a lot of great deals,” Trump said.

India has always denied the US President’s claims that he helped mediate the ceasefire between India and Pakistan, though. Indian officials have said that Pakistan’s Director General of Military Operations (DGMO) was the one who first got in touch with their Indian counterpart to ask for a halt to hostilities, which led to the ceasefire accord.

The next few days will be very important for figuring out what will happen with commerce between India and the US in the near future, as the August 1st deadline approaches.