President Donald Trump on Tuesday indicated that the US may impose tariffs ranging between 20% and 25% on Indian imports, though he emphasised that the rate hasn’t been finalised yet, according to a Bloomberg report published Tuesday. “I think so,” Trump said aboard Air Force One when asked if that range was under consideration.
“India has been a good friend, but India has charged basically more tariffs than almost any other country,” the US President further said, adding, “You just can’t do that.”
Negotiations Ahead of August 1 Deadline
On August 1, a deadline set earlier by Trump, a new slab of reciprocal tariffs may automatically come in effect in case no trade agreements are reached till then. Trump had initially proposed these levies in April at around 26%, but paused them, subsequently reducing the rate to 10% while giving countries time to negotiate.
US Trade Representative Jamieson Greer told CNBC that trade discussions with New Delhi are still ongoing. “They have expressed strong interest in opening portions of their market… I think we need some more negotiations with our Indian friends to see how ambitious they want to be.”
India Braces for Possible Higher Tariffs
With recent Reuters reports suggesting that India could be preparing for a possible tariff hike in the 20–25% range, though nothing has been finalised yet, Union Commerce Minister, in recent public remarks, had expressed optimism about striking a deal with the US ahead of the August 1 deadline.
Stakes for Both Sides
Trump has seemingly prioritised trade deals with allies that open closed markets to American goods. Though previous trade deals have materialised with the EU and Japan, trade negotiations, reports suggest, have been underway to strike a formal agreement with India in this regard.
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