17 hours ago
New Delhi,UPDATED: Jul 30, 2025 01:23 IST
US President Donald Trump on Monday said a trade agreement with India has not yet unfinished, just two days before the August 1 deadline to impose reciprocal tariffs. Speaking to reporters, Trump said discussions are ongoing and hinted that India could face import duties as high as 25% if talks do not reach agreement.
"India trade deal not been finalized." When asked about the possibility of tariffs ranging from 20% to 25%, Trump responded, "Yeah, I think so. India is my friend. They ended the war with Pakistan at my request... The deal with India is not finalised. India has been a good friend, but India has charged basically more tariffs than almost any other country."
In recent weeks, the US president has been repeating that both sides were close to striking a trade agreement.
INDIA AWAITS VISIT FROM US DELEGATION IN MID-AUGUST
According to Reuters, New Delhi is preparing for potential US tariffs on select exports -- expected to range between 20% and 25% -- if a deal is not finalized by the deadline. However, rather than rushing into new concessions, India is planning to restart trade negotiations when a US delegation visits in mid-August.
"Talks are progressing well, and a delegation is expected in Delhi by mid-August," one Indian official told Reuters. The official added that Trump could still issue a formal tariff notification imposing duties of up to 25% in a "worst-case scenario."
He added, "We assume it would be a temporary measure, considering the five rounds of trade talks that have taken place. A deal will soon be worked out."
Indian officials said that the objective is to work toward a comprehensive bilateral trade agreement by September or October. While discussions have been positive, certain sectors remain contentious, particularly agriculture and dairy.
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Published By:
Harshita Das
Published On:
Jul 30, 2025
