US President Donald Trump stated on Tuesday (July 29) that India might face tariff charges as excessive as 25% on its exports to the USA, however emphasised {that a} closing determination had not but been made. The remarks come as the 2 international locations work towards resolving longstanding commerce disagreements.
“I believe so,” Trump responded when requested by reporters aboard Air Pressure One if the US would impose a 20–25% tariff charge on Indian items.
“India has been a very good pal, however India has charged mainly extra tariffs than nearly every other nation. You simply can’t try this.” Trump added.
The US President made the feedback whereas getting back from a five-day journey to Scotland, reiterating his stance that the US have to be handled pretty in international commerce relationships.
Tariff truce set to run out
The reciprocal tariffs have been imposed on April 2, 2025 and have been presupposed to take impact from July 9, 2025. Nevertheless, the deadline for the imposition of the import duties was later prolonged to August 1, 2025. The US has thus far reached agreements with the UK, Indonesia, Philippines, European Union and Japan.
India braces for short-term measures
Citing two Indian authorities sources, Reuters reported that New Delhi is making ready for the potential for increased tariffs—probably between 20% and 25%—on choose exports as a short lived measure. As an alternative of providing recent concessions, India plans to renew complete commerce talks in mid-August throughout the go to of a US delegation.
“Talks are progressing properly, and a delegation is predicted in Delhi by mid-August,” Reuters quoted one India official as saying, with the information report including that the US should still situation a tariff letter in a “worst-case situation.”
US seeks higher market entry
US Commerce Consultant Jamieson Greer echoed the necessity for additional talks throughout an interview with CNBC, saying, “We proceed to talk with our Indian counterparts, we’ve at all times had very constructive discussions with them.”
Nevertheless, he admitted extra work is required: “We want some extra negotiations on that with our Indian mates to see how formidable they need to be.”
“The factor to grasp with India is their commerce coverage for a really very long time has been premised on strongly defending their home market. That’s simply how they do enterprise,” he famous.
“The president is in a mode of wanting offers that considerably open different markets,” Greer added. “That they open all the things or close to all the things.”
