President Donald Trump said Tuesday that India could be subject to tariffs ranging between 20% and 25% as the US moves toward imposing reciprocal levies on trading partners who have yet to reach new trade agreements.
The president’s remarks, made aboard Air Force One following a visit to Scotland, come ahead of an August 1 deadline by which several countries must either reach a deal with the US or face higher tariffs on certain exports.
“India has been a good friend,” Trump stated, “but India has charged basically more tariffs than almost any other country. You just can’t do that.”
While the final rate is yet to be determined, Trump confirmed that a 20–25% tariff range was under consideration.
The current 10% tariff rate imposed in April was intended as a temporary measure, offering time for negotiations.
However, with only a few agreements finalized thus far, the administration is preparing to move forward with broader tariff hikes on trading partners, including India.
Talks continue even as tariff deadline looms
US Trade Representative Jamieson Greer emphasized Monday that further negotiations with India are needed, noting that Washington is prioritizing favorable deals over quick resolutions.
“We need more negotiations with our Indian friends to see how ambitious they want to be,” Greer told CNBC.
Indian government officials confirmed to Reuters that they are bracing for higher tariffs in the range of 20% to 25%, but consider such measures temporary.
“Talks are progressing well, and a delegation is expected in Delhi by mid-August,” one official noted, suggesting that a more comprehensive agreement could be finalized by September or October.
In the meantime, New Delhi is holding back on additional trade concessions.
Indian trade minister Piyush Goyal recently described the talks as making “fantastic” progress.
While India has offered tariff cuts on a wide range of goods and is working to ease non-tariff barriers, it remains firm on keeping its agriculture and dairy sectors closed, particularly to genetically modified soybean, corn, and foreign dairy imports.
Strategic calculations and global trade tensions
The renewed trade friction comes as India recalibrates its trade strategy in response to wider US tariff threats against BRICS nations over geopolitical issues such as de-dollarisation and purchases of Russian oil.
Indian officials indicated they aim to secure a deal that offers Indian exporters preferential access compared to peer economies.
Total bilateral goods trade between the US and India reached $129 billion in 2024, with India recording a trade surplus of nearly $46 billion.
However, absent a deal, Indian exports may face average US tariffs of around 26%—higher than those levied on Vietnam, Indonesia, Japan, or the European Union.
While both sides remain committed to ongoing dialogue, key sticking points and geopolitical complexities may prolong negotiations.
Still, Indian officials express optimism that a balanced and mutually beneficial agreement will be reached in the coming months.
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