The United States may impose tariffs of up to 25% on Indian goods if the two countries fail to reach a trade agreement by August 1, President Donald Trump said on Tuesday.
Trump, speaking to reporters, confirmed the possibility of higher tariffs and criticized India’s history of imposing high import duties.
“India has been a good friend, but India has charged basically more tariffs than almost any other country,” he said. “But now I’m in charge, and you just can’t do that.”
Trade talks between Washington and New Delhi have been ongoing for months. U.S. and Indian officials have alternated between optimistic and cautious tones, but no deal has been announced yet. Key issues include access to India’s agriculture and dairy markets, which the U.S. sees as important but India has long protected to safeguard local farmers and food security.
India’s Commerce Minister Piyush Goyal said last week the agriculture sector is sensitive and the government would ensure that farmers’ interests are protected. He also expressed hope that a deal could be reached soon.
The U.S. has already sent letters to more than a dozen trading partners about new tariff rates, though India has not yet received one. Back in April, Trump announced tariffs of up to 27% on Indian goods, but later paused the decision.
U.S. Trade Representative Jamieson Greer said earlier this week that discussions with Indian counterparts have been constructive, though he noted India’s trade policy has historically focused on protecting its domestic market.
India has already lowered tariffs on some U.S. goods, such as Bourbon whiskey and motorcycles. However, the U.S. continues to run a trade deficit of $45 billion with India. Last year, bilateral trade between the two countries reached $190 billion. Trump and Indian Prime Minister Narendra Modi have set a goal to raise it to $500 billion.
