Deal not finalised, imports from India could face 20-25% tariffs: Trump

US President Donald Trump on Tuesday said that imports from India might be hit with a tariff rate of 20 to 25 per cent as the trade deal between the two countries had not been finalised yet. Trump made the comments ahead of an August 1 deadline for the implementation of reciprocal tariffs on various trading partners, including India. In April, he announced increased tariffs with an objective to reduce US’ trade deficit but later paused them at a reduced 10 per cent rate to facilitate negotiations.

“I think so,” Trump told reporters when asked if 20-25 per cent would be the possible tariff rate for India.

“…India is my friend. They ended the war with Pakistan at my request… India has been a good friend, but India has charged basically more tariffs than almost any other country. You just can’t do that,” Trump said aboard Air Force One while returning to Washington from a five-day visit to Scotland.

US Trade Representative Jamieson Greer stated on Monday that the US required additional time for negotiations with India to assess the country’s readiness to expand its market to American exports.

The US is pushing for reduced tariffs on its industrial goods, electric vehicles, dairy products, wines, apples, tree nuts and genetically modified crops. In contrast, India remains steadfast in maintaining high tariffs on agricultural and dairy products, with some farmer groups urging the government to exclude agriculture from the agreement entirely.

The India-US Bilateral Trade Agreement was announced in February this year, with an aim to enhance trade and investment ties targeting a doubling of bilateral trade to $500 billion by 2030. So far, five rounds of talks have concluded and a US team is scheduled to visit India on August 25 for the sixth round of talks.

The tariffs on Indian products could hurt New Delhi’s exports growth, as the US is India's top export destination with nearly 20 per cent share in the country's total outbound shipments.

India exported goods worth $86.51 billion to the US in 2024-25 (Apr-Mar) and had a trade surplus of $40.82 billion during the period, according to commerce ministry data.