U.S. President Donald Trump stated that if a trade agreement with India is not reached, the country may face tariffs of up to 25 percent. This warning came ahead of an important negotiation deadline set for August 1.
“Yes, that could happen,” Trump said on Tuesday in response to journalists’ questions. He did not rule out increasing tariffs if no trade deal is reached with India.
In recent months, representatives of the two countries have been discussing trade terms. However, opinions on the outcome of the talks vary — sometimes optimistic, sometimes cautious.
Although Trump has called India a “good friend,” that friendship has not resolved serious differences in trade. “India is one of the countries with the highest tariff rates,” he said. “But now I’m in charge, and this can’t go on.”
So far, the U.S. has not officially notified India of new tariff rates, but similar notices have already been sent to dozens of other trade partners.
India has not yet made an official comment, but Trade Minister Piyush Goyal recently stated in interviews that Delhi is approaching the negotiations positively.
“The agricultural sector is extremely sensitive for India. We comprehensively protect the interests of our farmers,” Goyal said in an interview with CNBC.
In comments to Reuters, he also stated that the negotiations are moving at a “fantastic pace” and expressed hope for a “significant partnership” agreement with the U.S.
The U.S. has long demanded access to India’s agricultural sector. The Trump administration sees access to this area as a key priority for opening the Indian market.
India continues to protect this sector, considering it strategically important for domestic food security and the interests of millions of small farmers.
In 2024, trade between the U.S. and India reached $190 billion, making the U.S. one of India’s largest trading partners. Trump and Indian Prime Minister Narendra Modi have set a goal of increasing that figure to $500 billion.
India has already reduced tariffs on some products — notably Bourbon whiskey and motorcycles. However, the U.S. has still not been able to eliminate a $45 billion trade deficit with India, which remains one of the Trump administration’s main concerns.
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