Trump Warns India of Potential 25% Tariffs Amid Trade Negotiations
Sourse: dairynews.today
President Trump has indicated that India may face tariffs as high as 25% if a trade deal with the US is not finalized by August 1.
DELHI — India could face tariffs as high as 25% if it fails to finalise a trade deal with the US this week, President Donald Trump has said. "Yeah, I think so," he told reporters on Tuesday when asked whether Delhi would face higher tariffs in the absence of an agreement. The US has set a 1 August deadline for India and several other countries to either reach a trade agreement or face increased tariffs. Indian and American officials have been negotiating a trade deal for the past few months. However, officials have varied between sounding optimistic and cautious about when it will be announced.
When asked about what he expected from a potential deal with India, Trump said: "We're going to see. India has been a good friend, but India has charged basically more tariffs than almost any other country". "But now I'm in charge, and you just can't do that", he added. The BBC has reached out to India's commerce ministry for a comment. The US president has repeatedly criticized India's high tariffs, branding it a "tariff king".
Trump has not yet sent a letter to India setting a new tariff rate, unlike more than a dozen other trading partners. Back in April, Trump had announced tariffs of up to 27% on Indian goods, which was later paused. Since then, both sides have been racing to negotiate an agreement. US Trade Representative Jamieson Greer stated that discussions have been constructive, albeit acknowledging India's historically protectionist trade policies. Agriculture and dairy remain key sticking points, with India protecting its farm sector for reasons including food security. Both countries aim to double bilateral trade to $500 billion, with India recently reducing tariffs on certain goods. The US continues to run a $45 billion trade deficit with India, which Trump is keen to reduce.
When asked about what he expected from a potential deal with India, Trump said: "We're going to see. India has been a good friend, but India has charged basically more tariffs than almost any other country". "But now I'm in charge, and you just can't do that", he added. The BBC has reached out to India's commerce ministry for a comment. The US president has repeatedly criticized India's high tariffs, branding it a "tariff king".
Trump has not yet sent a letter to India setting a new tariff rate, unlike more than a dozen other trading partners. Back in April, Trump had announced tariffs of up to 27% on Indian goods, which was later paused. Since then, both sides have been racing to negotiate an agreement. US Trade Representative Jamieson Greer stated that discussions have been constructive, albeit acknowledging India's historically protectionist trade policies. Agriculture and dairy remain key sticking points, with India protecting its farm sector for reasons including food security. Both countries aim to double bilateral trade to $500 billion, with India recently reducing tariffs on certain goods. The US continues to run a $45 billion trade deficit with India, which Trump is keen to reduce.
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