Trump Warns India Could Face 25% Tariffs
Former US President Donald Trump threatens tariffs of up to 25% on Indian goods if a trade agreement isn’t finalized by August 1.
Donald Trump has warned that India could face tariffs of up to 25% on its exports to the United States if it fails to secure a trade agreement before the looming August 1 deadline.
Speaking to reporters on Tuesday, Trump said, “India has been a good friend, but India has charged basically more tariffs than almost any other country. But now I’m in charge, and you just can’t do that.”
The Trump administration has been engaged in back-and-forth negotiations with New Delhi over the past few months, seeking to reduce the U.S. trade deficit and increase access to Indian markets. Officials from both sides have expressed mixed signals — at times optimistic, at other times cautious — about the prospects of a deal.
US Pushes for Greater Market Access
One of the key sticking points in the ongoing discussions is agriculture. Washington has long sought greater access to India’s farm sector, viewing it as a significant and underexploited market. However, Indian officials have defended their protectionist policies, citing the need to safeguard food security and the livelihoods of millions of small farmers.
“Agriculture is a sensitive sector for India,” Indian Commerce Minister Piyush Goyal said in recent interviews. He emphasized that any agreement would ensure farmers’ interests are “well protected.”
Goyal also expressed confidence about reaching an agreement, calling progress in the talks “fantastic” and saying India remains “optimistic” about finalizing a “very consequential partnership.”
Tariff Threats Intensify Pressure
Trump previously proposed tariffs as high as 27% on Indian goods earlier this year, though those measures were paused. The current threat intensifies pressure on Delhi to reach a deal. While India has already reduced tariffs on several products — including Bourbon whiskey and motorcycles — the U.S. continues to run a $45 billion trade deficit with India.
US Trade Representative Jamieson Greer acknowledged that India’s long-standing protectionist trade policy makes negotiations difficult, but reiterated that the Trump administration is determined to secure deals that substantially open other markets to American goods.
Trump and Indian Prime Minister Narendra Modi had previously set a target of boosting bilateral trade to $500 billion. In 2024, it stood at $190 billion, making the US India’s largest trading partner at the time.