India Braces for Possible 25% US Tariffs as Trade Deadline Nears.
India may soon face steep US tariffs of up to 25% if ongoing trade negotiations with Washington fail to yield a breakthrough before the August 1 deadline, according to a Bloomberg report citing remarks by former US President Donald Trump.
Speaking to reporters aboard Air Force One during his return from Scotland, Trump said, “I think so,” when asked whether tariffs on Indian goods could rise to between 20% and 25%. He added, “India has been a good friend, but it’s been charging higher tariffs than nearly any other country. That’s not acceptable.”
In April, Trump had signalled increased tariffs but temporarily implemented a lower 10% duty to allow room for negotiations. With time running out, both sides are under growing pressure to resolve key issues before punitive measures take effect.
According to Reuters, New Delhi is preparing for the possibility of significantly higher tariffs. A senior government official confirmed that the sixth round of trade negotiations will be held in India on August 25, following the recent fifth round in Washington.
While talks have been ongoing for months, a comprehensive agreement remains elusive. Major sticking points include market access and import duties on certain goods.
US Trade Representative Jamieson Greer, speaking to CNBC, acknowledged the slow progress. “We continue to engage constructively with our Indian counterparts,” he said. “They’ve shown interest in opening parts of their market, but more negotiations are needed to assess the level of ambition on both sides.”
Greer also cited India’s long-standing protectionist policies as a key hurdle. The negotiations are part of broader efforts to establish a bilateral trade agreement between the two countries. Despite mutual interest, meaningful progress has been slower than anticipated.
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