Ahead of the August 1 deadline, former US President Donald Trump stated that the India-US trade deal was “working out very well,” but hinted at a 20% to 25% tariff on New Delhi. During a press interaction aboard Air Force One, Trump responded to reports suggesting India might impose similar tariffs on US goods. He mentioned that India has been imposing higher tariffs on the US compared to other nations, but that this would change now that he is “in charge.”
Trump has not yet officially announced these tariffs to India. He stated that India has imposed higher tariffs than almost any other country, but the situation is changing. Earlier on April 22, Trump had imposed a 26% tariff on Indian goods, before pausing those levies. Meanwhile, Indian Union Minister for Commerce Piyush Goyal stated that trade discussions between India and the US were going “very well,” emphasizing India’s strong negotiating position.
Foreign Secretary Vikram Misri also indicated active discussions with the US regarding a potential Bilateral Trade Agreement (BTA), highlighting ongoing contacts with US partners. A senior government official mentioned that India is making concrete progress toward finalising a BTA with the US, with both countries aiming for a mutually beneficial deal.
Trump also took the opportunity to claim credit for brokering the ceasefire agreement between India and Pakistan, following recent conflict. He also praised India’s leadership under Prime Minister Narendra Modi for its role in regional stability. India reportedly refuted these claims, stating the ceasefire was initiated by Pakistan’s DGMO.
