The former US President Donald Trump has indicated a potential escalation in trade tensions with India, suggesting a 20-25% tariff on Indian goods. This comes just days before the August 1 deadline concerning tariffs. Despite these hints, Trump described the ongoing India-US trade deal as “working out very well.”
Speaking aboard Air Force One, Trump referenced reports indicating India might impose similar tariffs on US products. He emphasized India’s comparatively high tariffs on US goods. He stated his intention to address this issue, asserting his control over trade policies.
While no formal notice has been sent to India, Trump’s comments suggest a shift in approach. He highlighted that India has historically had high tariffs, but the situation is set to change. A 26% tariff was previously imposed on Indian goods on April 22, but it was later put on hold.
Simultaneously, Indian officials have expressed optimism regarding the trade negotiations. Commerce Minister Piyush Goyal noted positive progress, emphasizing India’s strong position. Foreign Secretary Vikram Misri confirmed ongoing discussions on a Bilateral Trade Agreement (BTA) with the US. A senior government official confirmed the progress towards a mutually beneficial agreement.
In the same address, Trump also reiterated his claim of mediating a ceasefire between India and Pakistan following recent conflict, and praised India’s leadership. India has disputed this claim, stating Pakistan initiated the request for a ceasefire.