US President Donald Trump said on Tuesday (July 29) that India could face tariff rates as high as 25% on its exports to the United States, but emphasised that a final decision had not yet been made. The remarks come as the two countries work toward resolving longstanding trade disagreements.
“I think so,” Trump responded when asked by reporters aboard Air Force One if the US would impose a 20–25% tariff rate on Indian goods.
“India has been a good friend, but India has charged basically more tariffs than almost any other country. You just can’t do that.” Trump added.
The US President made the comments while returning from a five-day trip to Scotland, reiterating his stance that the US must be treated fairly in global trade relationships.
Tariff truce set to expire
The reciprocal tariffs were imposed on April 2, 2025 and were supposed to take effect from July 9, 2025. However, the deadline for the imposition of the import duties was later extended to August 1, 2025. The US has so far reached agreements with the UK, Indonesia, Philippines, European Union and Japan.
India braces for temporary measures
Citing two Indian government sources, Reuters reported that New Delhi is preparing for the possibility of higher tariffs—likely between 20% and 25%—on select exports as a temporary measure. Instead of offering fresh concessions, India plans to resume comprehensive trade talks in mid-August during the visit of a US delegation.
“Talks are progressing well, and a delegation is expected in Delhi by mid-August,” Reuters quoted one India official as saying, with the news report adding that the US may still issue a tariff letter in a “worst-case scenario.”
US seeks greater market access
US Trade Representative Jamieson Greer echoed the need for further talks during an interview with CNBC, saying, “We continue to speak with our Indian counterparts, we’ve always had very constructive discussions with them.”
However, he admitted more work is needed: “We need some more negotiations on that with our Indian friends to see how ambitious they want to be.”
“The thing to understand with India is their trade policy for a very long time has been premised on strongly protecting their domestic market. That’s just how they do business,” he noted.
“The president is in a mode of wanting deals that substantially open other markets,” Greer added. “That they open everything or near everything.”
