Just days before his self-imposed August 1 deadline for new tariffs, U.S. President Donald Trump hinted at imposing a 20% to 25% tariff on Indian goods, even as he insisted that the India-U.S. trade deal was “working out very well.”
Speaking to reporters aboard Air Force One, Trump responded to reports suggesting India might be preparing for similar tariff levels. He argued that India had long imposed higher tariffs on U.S. goods compared to other nations.
“India has been a good friend. But India has charged basically more tariffs than almost any other country over the years. But now I’m in charge. And you just can’t do that,” Trump said. “I think the trade deals are working out very well. Hopefully for everybody, but for the United States, they’re very, very good.”
Trump, however, has not issued any formal letters to India about these proposed tariffs, unlike the notices sent to several other countries.
Trade Talks and India’s Position
In April, Trump had announced a 26% tariff on Indian imports, later pausing those “reciprocal” levies. Since then, New Delhi and Washington have continued trade talks.
Commerce Minister Piyush Goyal stated on Sunday that India was negotiating “from a position of strength.”
“India today negotiates from a position of strength, a position of confidence… Our discussions with the United States are progressing very well,” he said.
Foreign Secretary Vikram Misri echoed this during Prime Minister Narendra Modi’s recent visit to the U.K., noting that India and the U.S. were actively discussing a Bilateral Trade Agreement (BTA):
“We are discussing that under a different vertical… Our engagement is underway. The contacts are underway, and we’ll see how that goes.”
A senior government official earlier this month added that India was making “concrete progress” toward finalizing the BTA, stressing that both nations were committed to a “mutually beneficial deal.”
Trump’s Ceasefire Claim
Trump also repeated his claim of mediating the India-Pakistan ceasefire following the April 22 Pahalgam terror attacks that killed 26 people and India’s subsequent Operation Sindoor targeting terror camps in Pakistan and Pakistan-occupied Jammu and Kashmir.
“Look, India, they’re my friends and he’s [PM Modi] my friend and you know they ended the war with Pakistan and by request and I was great and Pakistan did also. We did a lot of great settlements,” Trump said, while praising Modi’s leadership for “regional stability.”
India, however, has rejected Trump’s version of events, clarifying that it was Pakistan’s DGMO who contacted India’s military leadership to request an end to hostilities, which then led to the ceasefire agreement.
Inputs: The Washington Post
