Trump Signals 25% Tariffs on Indian Goods Amid Stalled Trade Talks

The Big Picture

In a sharp escalation of trade tensions, President Donald Trump has warned that the United States will impose tariffs of up to 25% on goods imported from India. The announcement, delivered during an informal exchange with reporters aboard Air Force One, marks a pivotal moment in the ongoing trade talks between the two countries.

“They will pay 25%,” Trump said bluntly, adding, “India has been a good friend, but India has charged basically more tariffs than almost any other country. But now I am in charge, and you just can’t do that.”

What’s New

The comments were made as Trump returned from a five-day visit to Scotland that combined golf outings with working meetings. When asked about the status of a trade agreement with India, the President replied, “I know it is not okay. We are going to see.”

His remarks underscore the lack of progress in bilateral trade negotiations, which have been ongoing for several months without substantial breakthroughs. According to The Indian Express, discussions remain gridlocked over tariffs and market access terms.

What They’re Saying

Washington has long pushed for greater duty-free access to India’s markets, particularly in agriculture, dairy, industrial equipment, and automotive sectors. The U.S. has also sought lower tariffs on wines and petrochemical products.

In return, New Delhi has maintained that U.S. duties on Indian goods should not exceed 15% and has requested relief from tariffs on key exports such as steel, aluminum, and automobiles. India has also expressed willingness to boost imports of U.S. defense systems, natural gas, and civilian nuclear technologies as part of a broader package.

Behind the Scenes

According to Indian government sources cited in local media, policymakers in New Delhi are bracing for a tariff hike in the 20%–25% range. Still, officials are cautious about rushing into a deal ahead of the informal August 1 deadline set by Washington.

Indian negotiators have reportedly conveyed that any agreement must reflect a balanced approach, emphasizing mutual respect for each country’s trade sensitivities.

What’s Next

With the deadline approaching, the next few days will be critical in determining the future of U.S.-India trade relations. A formal announcement from the U.S. Trade Representative’s office or the White House may follow, should the negotiations fail to yield results.

The imposition of 25% tariffs could impact billions in bilateral trade and reverberate through global markets already wary of protectionist policies.

Watch Trump’s Full Remarks

Watch the video of President Trump’s comments aboard Air Force One: Full Video

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