US President Donald Trump warned that India could face tariffs of 20-25% by August 1 if trade negotiations fail, though the rate remains unfinalized. Speaking to reporters on Air Force One after a five-day Scotland visit, Trump called India a "good friend" but criticized its high tariffs on US goods, stating, "You just can't do that." He referenced his role in resolving India-Pakistan and Cambodia conflicts, suggesting trade leverage influenced those outcomes.
The US initially imposed a 10% tariff in April, paused to allow talks, but progress with India remains slow. US Trade Representative Jamieson Greer noted the need for more time to assess India’s willingness to open markets. A US team will visit New Delhi on August 25 for further negotiations, following the fifth round of talks last week. Both sides aim for an interim deal before the August 1 deadline, when reciprocal tariffs on India and other nations could escalate.
India, bracing for higher levies, faces pressure to reduce trade barriers. Trump emphasized that ongoing trade deals benefit the US, hinting at optimism but stressing fairness. The looming deadline intensifies efforts to finalize a bilateral agreement, with India’s high tariffs remaining a key sticking point.
Also Read: Taiwan’s President Cancels US Stopover Amid China Tensions
Also Read: Thailand-Cambodia Ceasefire Teeters Amid Border Skirmishes