US President Donald Trump has made an important statement on Tuesday in which he said that if the trade agreement between India and the US is not reached soon, the US may impose a tariff of 20 to 25 percent on goods imported from India. However, Trump also clarified that no final decision has been taken on this yet and the decision will be taken by the US President.
Trump was speaking to reporters aboard Air Force One when a reporter asked him if India was ready for increased US tariffs. On this, Trump said, “I feel like this.” He said that India is a good friend to him, but in the last few years, India has imposed the highest tariffs on US goods compared to many countries. Trump also pointed out that India has collected almost the highest tariff so far, which is an important fact.
During this time, Trump also claimed to have a ceasefire between India and Pakistan and called it a “great step”. He said that both the countries have made many good agreements together and Pakistan has also done a good job in it.
The American team will come to India
At the same time, negotiations are ongoing to finalize the trade agreement between India and America. Next month, a US team will visit India to further negotiate a proposed bilateral trade agreement between the two countries. According to sources, the US team will reach India on August 25. The purpose of this meeting is to finalize the trade agreement as soon as possible so that the economic and trade relations between the two countries can be strengthened.
Trump’s global warning
Even before Trump’s statement, he had warned countries around the world who are not negotiating a separate trade agreement with the US. Trump said that America can collect tariffs of 15 to 20 percent from such countries. This rate is much higher than the baseline tariff of 10 percent set by the US in April. The purpose of this step is to provide better protection of the American market and protect American products from foreign competition.
Experts say that if a tariff of 20-25 percent is imposed on India, it will increase the prices of Indian products and may affect their competitiveness in the US market. At the same time, India may also tighten its tariff rules to protect its domestic industries, which is likely to increase trade tensions between the two countries.
Negotiations between the two countries continue
India’s Commerce Minister Piyush Goyal recently said that talks on an Indo-US trade agreement are moving at a fast pace and that the two countries are working in a “spirit of mutual cooperation”. Goyal expressed confidence that a strong and beneficial trade agreement will be reached between the two countries by October-November 2025.
At the same time, US trade representative Jameson Greer has also said that India has shown “strong interest” in opening some parts of its market, but further brainstorming is needed to further advance the talks. According to Greer, Trump wants a “good deal” more than a “quick deal.”