INDIA FACES UP TO 25% TARIFFS IF US TRADE DEAL FAILS

President Donald Trump warned on Tuesday July 28th that India could face tariffs of up to 25% if a trade deal is not finalized by the U.S.-imposed August 1 deadline. The warning followed months of negotiations that have seen both optimism and caution from officials on both sides.
Trump accused India of charging higher tariffs than nearly all other nations: “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.”
U.S. Trade Representative Jamieson Greer emphasized that although discussions have been constructive, India’s long-standing protectionist trade policies remain a point of friction. Washington aims to open India’s agricultural and dairy sectors, sectors India defends citing food security and smallholder farmer interests.
Despite India reducing tariffs on select items—such as Bourbon whiskey and certain motorcycles—the U.S. trade deficit with India stood at $45 billion in 2024, and both nations have targeted to nearly triple bilateral trade from $190 billion to $500 billion.
Indian Prime Minister Narendra Modi’s government continues to express optimism. Commerce Minister Piyush Goyal described discussions with the U.S. as making “fantastic progress” and emphasized the agriculture sector remains highly sensitive and will be protected.