US President Donald Trump has confirmed that a trade deal with India is not yet finalized. He warned that higher tariffs on Indian exports could be imposed if no agreement is reached by the August 1 deadline.
Trump’s statement followed a Reuters report that India might accept tariffs between 20% and 25% on its exports to the US if the deal fails. India is reportedly holding off on offering new concessions before the deadline.
“India has been a good friend, but they charge more tariffs than almost any other country,” Trump said aboard Air Force One. He added that this situation would change soon.
When asked about the Reuters report, Trump confirmed the trade talks were ongoing. He also said India could face steeper tariffs if a deal is not made.
India plans to resume broader trade discussions in mid-August. A US delegation will visit, aiming to finalize a bilateral trade deal by October, according to Indian officials.
An Indian official said the talks are progressing well. However, they warned Trump could impose tariffs as a “worst-case scenario.” The official expects any tariffs to be temporary, given the five rounds of talks so far.
Trump also repeated his claim that he helped broker a ceasefire between India and Pakistan earlier this year. India has disputed this claim.
Analysts believe Trump’s comments on the India-Pakistan conflict have complicated the trade negotiations.
Recently, Trump stated that most trade partners without separate deals could soon face tariffs between 15% and 20%. This is above the 10% tariff imposed earlier this year. The US plans to notify about 200 countries of new tariff rates.
US Trade Representative Jamieson Greer said talks with India require more time. Greer noted the US prefers good deals over quick agreements.
India has shown interest in opening parts of its market. However, it remains protective of agriculture and dairy sectors, which remain closed to US imports.
Bilateral trade between India and the US reached $129 billion in 2024. India holds a trade surplus of nearly $46 billion.
Indian officials say they are adjusting strategies amid wider US tariff threats targeting BRICS countries. They remain hopeful for a deal offering better market access for Indian exporters.
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