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Trump warns India of tariffs up to 25 pc

US President Donald Trump has said the India-US trade agreement is not yet finalised and warned of import tariffs as high as 25 per cent on Indian exports if negotiations do not conclude before the August 1st deadline.

News Arena Network - Washington D.C. - UPDATED: July 30, 2025, 08:48 AM - 2 min read

President Donald Trump says India US trade deal still not finalised.


US President Donald Trump has said the India-US trade agreement is not yet finalised and warned of import tariffs as high as 25 per cent on Indian exports if negotiations do not conclude before the August 1st deadline.

 

Speaking to reporters on Monday, Trump confirmed that discussions remain underway and made clear that, should talks fail, India could face significant import duties. “(They will pay) 25 per cent,” the US president said, adding that India has imposed higher tariffs than most other countries.

 

“India trade deal not been finalised,” Trump stated while responding to a question about possible duties ranging between 20 and 25 per cent. He also emphasised India’s relationship with the US, recalling that New Delhi ended its conflict with Pakistan at his request.

 

“India is my friend,” Trump said, but stressed that existing tariffs were excessive and that a fair agreement must be reached.

 

Trump, who spent recent days in Scotland golfing and holding meetings, has repeatedly said in recent weeks that both nations were close to sealing a deal.

 

India awaits visit from US delegation

 

According to the media, India is bracing for the possibility of fresh US tariffs on select exports if talks do not reach a breakthrough by the deadline. These duties could fall between 20 and 25 per cent. 

 

However, Indian officials indicated that New Delhi is unlikely to offer fresh concessions before a US delegation arrives in mid-August to restart discussions.

 

“Talks are progressing well, and a delegation is expected in Delhi by mid-August,” one senior Indian official told Reuters. The official noted that Trump could still sign a formal notification imposing the higher tariffs in a “worst-case scenario” but suggested such measures would likely be temporary.

 

“We assume it would be a temporary measure, considering the five rounds of trade talks that have taken place. A deal will soon be worked out,” the official added.

 

India aims to reach a comprehensive bilateral trade agreement by September or October but acknowledged that some sectors, including agriculture and dairy, remain contentious. India has consistently refused to allow imports of genetically modified crops such as soybean and corn and has maintained restrictions on opening up its dairy market.

 

Trump eyes wider global tariff push

 

On Monday, Trump hinted at plans for broader tariffs on other nations too. He suggested that countries without bilateral trade pacts with the US could soon face duties ranging from 15 to 20 per cent, significantly higher than the 10 per cent baseline tariff introduced in April.

 

The White House intends to notify about 200 countries of the proposed “world tariff” in the coming weeks.

 

Speaking to the local media, US Trade Representative Jamieson Greer confirmed that more work is needed before a deal with India can be signed.

 

“President Trump is more interested in good deals than quick deals,” Greer said, acknowledging India’s willingness to open parts of its market but stressing that its trade policies have historically prioritised domestic sectors.

 

India’s Commerce and Industry Minister Piyush Goyal, meanwhile, sounded a positive note last week, describing the progress in negotiations as “fantastic.”

Trade between India and the US is expected to reach around $129 billion in goods this year, with India maintaining a trade surplus of nearly $46 billion.

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