WASHINGTON: President Donald Trump issued a stern warning on Tuesday. He said India could face sharp tariffs if no trade deal is reached. Trump highlighted that India lacks a finalized agreement with the U.S. and may see duties rise up to 25%, effective from August 1.
Trump, speaking aboard Air Force One, mentioned that India “has been a good friend,” but added India imposes the highest tariffs of any country. He stated this pattern must end. When questioned about reports of India preparing for higher tariffs, Trump confirmed no deal exists yet—and tougher duties remain possible.
Meanwhile, Indian officials intend to resume broad talks by mid-August, when a U.S. delegation visits New Delhi. They aim for a comprehensive trade pact by October. After five negotiation rounds, progress seems solid, yet Trump’s unpredictable rhetoric continues to cause unease among Indian negotiators.
Trump also asserted he played a key role in brokering a ceasefire between India and Pakistan earlier this year—a claim India rejects. Analysts warn that comment may further hinder trade diplomacy and introduce unintended friction into negotiations.
Trump expanded his threat to other nations on Monday, announcing plans to impose 15–20% global tariffs on countries lacking bilateral trade treaties. India runs a $46 billion surplus in bilateral trade, making it a prime target. Indian trade officials noted they’re working on strategic adjustments and hope to secure preferential access for exporters under a new deal to insulate from the looming global tariff wave.