India-US trade deal stalemate: Ahead of his self-imposed tariff deadline, US President Donald Trump has said that a trade agreement with India has not yet been finalized. “India trade deal not been finalized,” said Trump. Asked whether India would face 20-25% tariff rates, he said, "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...". However, he cautioned that the tariff rate has not yet been decided as negotiations continue.
Trump’s remarks come just days ahead of the August 1, 2025 reciprocal tariff deadline. In the last few weeks Trump had said that the US is ‘nearing’ a deal with India. The likelihood of an interim trade deal announcement before the deadline appears slim for now.
India Braces For Higher Tariffs
Earlier in the day, Reuters reported that India is preparing for a temporary reciprocal tariff rate ranging between 20-25%. India anticipates facing elevated US tariffs on certain export items as an interim arrangement, two officials from the Indian government told the news agency.
"Talks are progressing well, and a delegation is expected in Delhi by mid-August," one of the Indian government officials said, adding that President Donald Trump could issue a tariff letter imposing duties of 20 or 25% in a "worst-case scenario".
"However, 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," the official was quoted as saying.
No India-US Trade Deal Before August 1?
Trump’s comments come right after a US trade official indicated that additional negotiations are needed for a trade agreement between India and the US.
US Trade Representative Jamieson Greer has confirmed ongoing discussions between both nations require further negotiation, reported Bloomberg.
Also Read |
‘More negotiations needed…’: Trump administration official shares update on India-US trade deal; no agreement before August 1 deadline?Despite being amongst the first countries to begin trade talks with the White House this year, India has maintained a firm position, particularly regarding its agriculture and dairy sectors.
Speaking to CNBC on Monday, Greer emphasised the necessity for additional discussions to finalise a trade agreement.
India's historical approach to market protection suggests that any easing of trade restrictions would represent a major policy change, despite earlier suggestions of a forthcoming deal with New Delhi.
"We continue to speak with our Indian counterparts, we've always had very constructive discussions with them," Greer said.
"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 said according to the Bloomberg report.
Also Read |
India-US trade deal: India treads cautiously after Trump’s trade agreements with Japan, others face challenges - here’s what’s happeningMeanwhile, Commerce Minister Piyush Goyal has recently shown confidence about securing an agreement to avoid the proposed 26% tariffs. He indicated that the US-India relationship remained positive, stating that discussions had excluded matters related to immigration policies, including H-1B visa provisions for skilled workers.
The minister indicated that negotiations for the trade agreement are advancing rapidly, while emphasising that India's national interests remain paramount in any such discussions. Goyal clarified that establishing trade agreements requires thorough consideration and cannot be constrained by deadlines.
Stay informed with the latest business news, updates on bank holidays and public holidays.
Discover stories of India’s leading eco-innovators at Ecopreneur Honours 2025
The TOI Business Desk is a vigilant and dedicated team of journal...
Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
Read Less