On Tuesday (local time), US President Donald Trump warned that India may have to pay up to 25 percent in tariffs on its exports to the US. But he made it clear that no decision had been made yet. His comments coincide with ongoing efforts by the US and India to settle long-standing trade disputes.
According to Bloomberg, regarding US-India trade negotiations, Trump stated that trade talks with India were underway while addressing reporters on Air Force One on his way back from a five-day trip to Scotland. He said, "Yeah, I think so," in response to a question concerning the potential for tariffs between 20 and 25 percent. India is a friend of mine. I asked them to cease the war with Pakistan. The agreement with India is still pending. He was quoted by Bloomberg as saying, "India has been a good friend, but India has charged basically more tariffs than almost any other country."
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Trump also restated his assertion that he mediated a ceasefire between India and Pakistan after Operation Sindoor in May 2025 while speaking to the media. "I asked them to end the war with Pakistan," he stated.
India is pushing for a trade deal by August 1st, and the US wants further discussions.
As the deadline of August 1st draws near, India is rushing to complete a trade agreement with the United States. Although there are still significant differences, officials from both nations are actively negotiating. In recent weeks, Trump has stated on numerous occasions that a deal between the parties is imminent.
But according to CNN, US Trade Representative Jamieson Greer told CNBC that negotiations with India would take longer. Greer stated that the US was ready to further discussions and pointed out that India has demonstrated a strong willingness to open up parts of its market. He did, however, add that additional discussions would be required to determine India's level of ambition.
The fifth round of trade negotiations concludes without any progress. Following the conclusion of the fifth round of trade negotiations, an Indian negotiating team headed by lead negotiator Rajesh Agrawal returned from Washington in July. There was no breakthrough at the end of the four-day discussion.
Conflicts over cars, agriculture, and, more recently, digital trade—a field that has emerged as a new hot spot since March—are among the main points of conflict. Despite numerous efforts to close the gap, these unresolved challenges have halted development.
India intends to resume negotiations and prepare for increased tariffs.
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According to Reuters, which cited two Indian government officials, New Delhi is getting ready for the prospect of temporary increased duties on a few shipments, most likely between 20 and 25 percent.
India plans to resume more extensive trade talks in mid-August, when a US group is slated to arrive, instead of making new concessions under duress.
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