Just days before the self-imposed August 1 deadline for potential tariff implementation, US President Donald Trump said the India-US trade deal is “working out very well,” but also hinted at the possibility of 20 to 25 per cent tariffs being imposed on Indian imports.
Speaking to reporters aboard Air Force One on Tuesday, Trump responded to reports suggesting India may be bracing for higher tariffs by reiterating that India has historically imposed steeper trade duties on the US than on other countries. “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.
While he signaled tough action, Trump has yet to send any formal notice to New Delhi about specific tariff measures, unlike previous communications sent to other countries.
Despite the rhetoric, Trump acknowledged ongoing negotiations: “I think the trade deals are working out very well. Hopefully for everybody, but for the United States, they’re very, very good.”
Earlier this year, on April 22, Trump had briefly imposed a 26 per cent tariff on Indian imports, but later paused the move, labeling it as part of “reciprocal” trade measures.
On the Indian side, Commerce Minister Piyush Goyal noted that discussions with the US have been “going very well.” He said India now negotiates trade agreements “from a position of strength and confidence,” and emphasized the country’s continued efforts to secure mutually beneficial free trade agreements.
Foreign Secretary Vikram Misri, speaking during Prime Minister Modi’s visit to the UK last week, also confirmed that India and the US were actively discussing a Bilateral Trade Agreement (BTA). “Engagement is underway, and contacts are ongoing,” he said at a press conference after the India-UK Free Trade Agreement signing.
On July 14, a senior government official in New Delhi affirmed that concrete progress was being made toward finalizing a BTA, stressing both countries’ commitment to the roadmap outlined by their leaders.
In the same interaction, Trump took credit for helping broker the ceasefire between India and Pakistan following India’s launch of Operation Sindoor—a retaliatory strike against terror camps in response to the April 22 Pahalgam terror attack, which claimed 26 lives.
“India, they’re my friends. PM Modi is my friend… 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.
However, Indian officials have dismissed the claim, asserting that the ceasefire was initiated by Pakistan’s Director General of Military Operations (DGMO), who contacted the Indian DGMO to seek an end to the hostilities. India maintains that the de-escalation followed its own military response and strategic decisions, not foreign mediation.
As negotiations on trade continue, both sides appear eager to finalize a balanced deal—but Trump’s remarks signal that tariff threats remain a part of his negotiation strategy.
