'They are going to pay': Trump warns India of 25% tariffs if no trade deal is reached
&imwidth=600&imheight=450&format=webp&quality=medium "'They are going to pay': Trump warns India of 25% tariffs if no trade deal is reached")
'They are going to pay': Trump warns India of 25% tariffs if no trade deal is reached Photograph: (Reuters)
President Trump warned of imposing up to 25% tariffs on Indian imports if a trade deal isn’t reached soon, calling India a friend but criticising its trade practices and high duties.
US President Donald Trump has threatened to slap tariffs of up to 25% on Indian imports if Washington and New Delhi fail to finalise a trade deal soon.
Trump: “They are going to pay 25%”
Speaking to reporters on Tuesday, Trump said, “They are going to pay 25%,” when asked about tariffs on Indian goods. Pressed further on whether the rate would be 20% to 25%, he replied, “Yeah, I think so. India has been, they’re my friends.” Although Trump referred to India as a friendly partner, he has repeatedly criticised the country’s trade practices and high import duties, calling the relationship “very tough”.
USTR says more negotiations needed
US Trade Representative Jamieson Greer told CNBC that more discussions are required to reach a trade agreement with India. “They have expressed strong interest in opening portions of their market, we of course are willing to continue talking to them,” Greer said. “But I think we need some more negotiations on that with our Indian friends to see how ambitious they want to be,” he added.
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Despite efforts from both sides, no specific sticking points have been revealed publicly. However, India’s commerce minister recently expressed optimism about reaching a deal before Trump’s self-imposed deadline of 1 August.
Tariffs already paused once
Earlier in April, Trump had already set a tariff rate of 26% on Indian imports but paused the move while waiting for trade talks to progress. Unlike in cases with other countries, Trump has not yet issued a formal tariff warning letter to India.
The US has taken issue not only with India’s high tariffs but also with its non-tariff barriers, such as digital service taxes and complex regulations for foreign imports. The administration has called India’s testing requirements “uniquely burdensome.”
Trump has frequently raised concerns about the trade gap with India. Last year, the US imported $87 billion worth of goods from India, compared to $42 billion in exports to India. Major Indian exports to the US included pharmaceuticals, smartphones, and clothing. “They charge more tariffs than any other country,” Trump said back in February, just before a meeting with Prime MinisterNarendraModi.
