Trump hints at 20–25% tariffs on Indian imports, says final decision still pending
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Trump hints at 20–25% tariffs on Indian imports, says final decision pending – ‘they ended the war with Pakistan’
US President Donald Trump said India could face tariff rates as high as 25 per cent on its exports to the United States. The remarks come as the two countries work toward resolving longstanding trade disagreements. Trump also repeated his claim of brokering a ceasefire between India and Pakistan after four days of military action in Operation Sindoor in May 2025. The reciprocal tariffs were imposed on April 2, 2025 and were supposed to take effect from July 9, 2025. However, the deadline for the imposition of the import duties was later extended to August 1, 2025, Reuters reported. India plans to resume comprehensive trade talks in mid-August during the visit of a US delegation.
“I think so,” Trump responded when asked by reporters aboard Air Force One if the US would impose a 20–25% tariff rate on Indian goods.
“India has been a good friend, but India has charged basically more tariffs than almost any other country. You just can’t do that.” Trump added.
The US President made the comments while returning from a five-day trip to Scotland, reiterating his stance that the US must be treated fairly in global trade relationships.
While speaking on tariffs, Trump also repeated his claim of brokering a ceasefire between India and Pakistan after four days of military action in Operation Sindoor in May 2025. “They ended the war with Pakistan at my request,” Trump said.
Trump’s comments came hours after Prime Minister Narendra Modi on the floor of the Lok Sabha said no world leader asked India to stop its military action against Pakistan during ‘Operation Sindoor’.
“No country in the world has stopped India from any action in its defence against terrorism,” Modi said on Monday.
Tariff truce set to expire The reciprocal tariffs were imposed on April 2, 2025 and were supposed to take effect from July 9, 2025. However, the deadline for the imposition of the import duties was later extended to August 1, 2025. The US has so far reached agreements with the UK, Indonesia, Philippines, European Union and Japan.
India braces for temporary measures Citing two Indian government sources, Reuters reported that New Delhi is preparing for the possibility of higher tariffs—likely between 20% and 25%—on select exports as a temporary measure. Instead of offering fresh concessions, India plans to resume comprehensive trade talks in mid-August during the visit of a US delegation.
“Talks are progressing well, and a delegation is expected in Delhi by mid-August,” Reuters quoted one India official as saying, with the news report adding that the US may still issue a tariff letter in a “worst-case scenario.”
US seeks greater market access US Trade Representative Jamieson Greer echoed the need for further talks during an interview with CNBC, saying, “We continue to speak with our Indian counterparts, we’ve always had very constructive discussions with them.”
However, he admitted more work is needed: “We need some more negotiations on that with our Indian friends to see how ambitious they want to be.”
“The thing to understand with India is their trade policy for a very long time has been premised on strongly protecting their domestic market. That’s just how they do business,” he noted.