Donald Trump, facing the August 1 tariff deadline, made statements suggesting the potential implementation of 20-25% tariffs on Indian goods. He stated that the trade deal between the US and India was “working out very well.” His remarks, made during a press interaction on Air Force One, came in response to reports that India might be considering similar tariffs.
Trump highlighted India’s existing high tariffs on US products, implying that this would be addressed under his leadership. Despite the statements, no formal announcement of new tariffs has been made to India.
Previously, the US had implemented a 26% tariff on Indian goods on April 22, but later paused the levy. India’s Commerce Minister, Piyush Goyal, has expressed satisfaction with the ongoing trade negotiations, indicating India’s confidence in its negotiating stance.
Foreign Secretary Vikram Misri has confirmed the active discussions between India and the US regarding a Bilateral Trade Agreement (BTA). A senior government official noted the concrete progress towards finalizing the BTA, stressing a mutually beneficial approach for both nations.
Trump also took the opportunity to assert his role in brokering the ceasefire between India and Pakistan. He also commended India’s leadership under PM Modi for its role in regional stability. India has contested Trump’s account of the ceasefire, stating it was initiated by Pakistan.