United States President Donald Trump on Tuesday said that Indian imports could face tariffs as high as 25% if the two countries are unable to finalise a trade agreement soon. “They are going to pay 25%,” Trump told reporters, according to CNN. When asked whether India would be charged tariffs between 20% and 25%, Trump replied, “Yeah, I think so. India has been; they’re my friends.” The United States and India have been discussing a trade deal for months, but no final agreement has been reached. Trump has been pressing for greater access for American goods to the Indian market. He has often made similar demands in other trade negotiations. US Trade Representative Jamieson Greer said further talks would be needed to move things forward. “They have expressed strong interest in opening portions of their market,” Greer said in an interview with CNBC on Monday, as reported by CNN. “We, of course, are willing to continue talking to them. But I think we need some more negotiations on that with our Indian friends to see how ambitious they want to be.” Although specific sticking points in the talks have not been publicly identified, officials on both sides have expressed interest in resolving differences. Last week, India’s commerce minister said he was hopeful that a deal could be reached before Trump’s self-imposed deadline of 1 August. Trump had earlier set tariffs on Indian goods at 26% on 2 April, as part of his push for what he called “reciprocal” trade arrangements. However, those tariffs were paused shortly after. Trump has not issued a formal letter threatening India with new duties, as he has with several other countries in recent months. But his latest remarks indicate that India could be next in line if no agreement is reached. The trade dynamics between the US and India reveal a significant imbalance, with the US importing approximately $87.4 billion worth of goods from India in 2024, while India imported around $41.8 billion worth of goods from the US. This resulted in a substantial trade deficit of $45.7 billion for the US. The top US imports from India included pharmaceuticals, communications equipment such as smartphones, and apparel.
