India Refutes False Reports of Tariff Review, Bilateral Deal Suspension With US Amid 25% Tariffs

As trade tensions between India and the US rages on, the Ministry of External Affairs (MEA) has refuted claims that India was reviewing tariff-free US goods in response to new trade policies. The MEA’s fact-check unit took to X (formerly Twitter) to clarify the situation, media reports said.

Another report, which, later turned to be fake, said that India might suspend its bilateral deals with the US if Donald Trump’s government continued to show hostile trade policies toward New Delhi, reports noted.

The MEA clarified that these claims are untrue and do not reflect India’s current stance or actions. Instead, officials confirmed that India and the US are actively working together to resolve trade disputes, sources said.

India is Hopeful That Trade Negotiations With the US Will Be Successful 

Sources close to the talks told local media that both nations are “intensely engaged” in efforts to reach a balanced and fair trade agreement. Negotiations are currently ongoing through virtual meetings, and a US delegation is expected to visit New Delhi for in-person discussions on August 24. This will mark the sixth round of physical negotiations.

These efforts come after US President Donald Trump imposed a 25 percent tariff on Indian goods, which took effect on August 1. The announcement was made via his social media platform, Truth Social.

President Donald Trump Had Accused India of “Unfair Trade” Practices

President Trump stated that India’s high tariffs and strict non-monetary trade barriers have made business difficult for American companies. He added that India’s oil and military deals with Russia during the ongoing war in Ukraine were also factors in the new tariff.

He claimed that India was involved in “unfair trade” practices with the US, and he won’t allow it to continue.

In a follow-up post, Trump criticized both India and Russia, saying they should “take their dead economies and go down together,” sparking further controversy.

Despite these sharp comments, both governments appear committed to resolving their trade issues through dialogue and continued engagement, local media reports have said.

Also Read: Unshaken by Tariffs: India Says U.S. Ties Remain Strong Despite Hike