Daijiworld Media Network - Washington
Washington, Jul 30: In a sharp statement that could impact India-US trade ties, US President Donald Trump has warned of potential tariffs ranging between 20% and 25% on Indian goods, even as trade negotiations continue ahead of the looming August 1 deadline.
Speaking to reporters aboard Air Force One while returning from a five-day visit to Scotland, Trump said, “India has been a good friend, but India has charged basically more tariffs than almost any other country. You just can’t do that.”
When asked whether the 20%–25% tariff rate was likely, Trump replied, “I think so,” though he clarified that the final decision had not yet been made.
The comment comes as the United States prepares to implement a wave of reciprocal tariffs on dozens of trade partners. While Trump had earlier announced these higher levies in April, they were temporarily capped at 10% to allow room for negotiations.
India, among the nations on that list, has been engaged in trade talks with Washington to avoid harsher penalties. US Trade Representative Jamieson Greer confirmed on Monday that additional time was needed to assess India's willingness to open its markets further to American exports.
Meanwhile, a Reuters report citing trade officials in New Delhi revealed that India is preparing for the worst, expecting the new tariff slabs to fall within the 20% to 25% range.
The potential escalation in tariffs could significantly affect sectors like textiles, steel, and automotive components — key Indian exports to the US — and further strain bilateral relations just months ahead of the US presidential election.
Observers see Trump’s statement as a pressure tactic aimed at securing greater market access for US goods, but Indian trade authorities have expressed concern about the growing unpredictability of Washington's trade policies.
With just a day left until the deadline, all eyes are now on whether the two nations can strike a last-minute deal or brace for another round of tit-for-tat economic measures.