Trump warns of tariffs as US-India trade deal remains incomplete ahead of August 1 deadline

Just days before a self-imposed August 1 deadline, US President Donald Trump stated that a trade deal with India has not yet been finalized, raising the possibility of new tariffs on Indian exports. Speaking to the media on Monday, Trump said India could face duties of up to 25% on selected goods if an agreement isn’t reached soon.

Also Read:Trump warns Russia of 100% tariffs if Ukraine ceasefire fails within 50 days

Trump acknowledged that India has been a friendly nation but criticized its high tariff barriers compared to other countries. He noted that despite ongoing negotiations, India continues to impose steep duties on American goods, particularly in sectors like agriculture.

India, however, has no plans to rush into last-minute compromises. Officials in New Delhi have indicated that formal negotiations will restart in mid-August when a US delegation is expected to arrive. The Indian side aims to finalize a comprehensive trade agreement by September or October, covering sensitive areas like agriculture and dairy. India has maintained its resistance to allowing genetically modified products such as corn and soybean and continues to protect its domestic dairy industry.

Trump also hinted at a broader global move, countries without bilateral trade deals with the US might soon face a new set of tariffs between 15% and 20%, higher than the 10% imposed earlier this year. The US government is reportedly preparing to notify nearly 200 countries about this new “universal tariff” strategy.

Despite the uncertainty, India’s Commerce Minister Piyush Goyal recently shared a positive outlook, describing the current trade dialogue as highly productive. In 2024, total goods trade between the two countries is projected to reach $129 billion, with India holding a $46 billion surplus.