US President Donald Trump has said that a trade agreement with India has not yet finalised, just two days ahead of his self-imposed August 1deadline to impose reciprocal tariffs. Speaking to reporters, Trump said discussions India-US trade deal was "working out very well" and hinted at a 20 per cent to 25 per cent tariff on New Delhi.
During a gaggle with the press interaction aboard Air Force One on Tuesday (local time), Trump responded to a report suggesting that India might be preparing for 20 to 25 per cent tariffs, stating that India had been imposing higher tariffs on the US as compared to other countries. He further mentioned that all this would come to an end as he is now "in charge."
'Deal with India is not finalised'
When asked if India is going to pay high tariffs, between 20-25 per cent, Trump said, "Yeah, I think so. India is my friend. They ended the war with Pakistan at my request. The deal with India is not finalised. India has been a good friend, but India has charged basically more tariffs than almost any other country."
However, Trump hasn't sent any letters to India announcing the tariff imposed on New Delhi, as he did for many other nations.
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Trump's remarks come at a critical time, just two days ahead of the August 1, 2025, reciprocal tariff deadline. Over the past few weeks, Trump had indicated that the US was "nearing" a trade deal with India, raising hopes for a resolution. However, with no concrete developments or formal announcements made yet, the prospects of an interim trade deal being finalised before the deadline appear slim.
Trump had imposed tariff of 26 per cent on Indian goods
The US remains India’s largest trading partner. In FY24, bilateral goods trade reached USD 191 billion according tothe Ministry of Commerce data. India’s exports to the US stood at USD 77.5 billion while imports were valued at USD 55.4 billion.
However, this trade equation is now at risk due to rising protectionist signals from the US. Earlier on April 22, Trump imposed a tariff of 26 per cent on Indian goods imported to the US, before announcing a pause on those "reciprocal" levies.
Meanwhile, the Union Minister for Commerce, Piyush Goyal, on Sunday, said that the trade discussion between India and the US had been going "very well."
"India today negotiates from a position of strength, a position of confidence. It is this very confidence that continuously encourages us to make good free trade agreements... Our discussions with the United States are progressing very well," he stated.
On July 14, a senior government official stated that India was making concrete progress toward finalising a BTA with the US, with both countries committed to following the path outlined by their respective leaders. Speaking on the ongoing trade negotiations, the official emphasised that India is "moving in terms of a BTA" and actively "looking at a mutually beneficial deal" that would serve the interests of both nations.
(With ANI inputs)
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