President Donald Trump on Wednesday said the United States was “still negotiating” with India on trade, after earlier announcing a 25% tariff on Indian imports along with an unspecified penalty, both set to take effect from Friday.
The morning announcement, made via Trump’s social media platform Truth Social, signalled a fresh escalation that could put further pressure on relations with India, the world’s most populous democracy. However, later in the day at the White House, the former president suggested there may be flexibility.
When asked by reporters whether the US was still open to discussions with India regarding the tariff decision, Trump responded, “We're talking to them now. We'll see what happens. Again, India was the highest or just about the highest tariff nation in the world, one of the highest, 100 points, 150 points or percentages. So India was one of the highest in the world. They had 175 per cent and higher than that.”
Earlier in the day, Trump announced on Truth Social that a 25% tariff would be imposed on India, alongside a penalty for purchasing Russian oil. These measures are set to come into force on 1 August. This move follows a previous tariff decision on 22 April, when Trump imposed a 26% duty on Indian imports to the US, which was later suspended.
The White House had earlier cautioned India over its steep average tariffs, which stand at nearly 39% for agricultural goods – rising to 45% for vegetable oils and about 50% for apples and corn.
{{/usCountry}}The White House had earlier cautioned India over its steep average tariffs, which stand at nearly 39% for agricultural goods – rising to 45% for vegetable oils and about 50% for apples and corn.
{{/usCountry}}"While India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high," Trump wrote on Truth Social.
He added, “They have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD!”
According to Reuters, the proposed tariffs could affect Indian exports to the US valued at around $87 billion in 2024, covering key sectors such as garments, pharmaceuticals, gems and jewellery, and petrochemicals.
India's response
India on Wednesday acknowledged Trump’s declaration that India would be subjected to a 25% tariff on select exports from 1 August, stating it is currently assessing the “implications” of the move.
In a statement, the ministry of commerce and industry Piyush Goyal said, “India and the US have been engaged in negotiations on concluding a fair, balanced, and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective.”
The government also stressed its continued dedication to protecting India’s economic priorities, particularly concerning farmers, entrepreneurs, and micro, small and medium enterprises (MSMEs).
“The government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs. The government will take all steps necessary to secure our national interest, as has been the case with other trade agreements, including the latest Comprehensive Economic and Trade Agreement with the UK,” the statement added.
‘Just negotiating tactic’
Trump’s move to impose 25% tariffs on India should be interpreted as a “negotiation tactic” rather than a major shift in US-India relations, former US assistant secretary of state Nisha Biswal told news agency ANI.
Biswal said that Trump had shown he remains "open to negotiations with India" despite his earlier announcement threatening new tariffs and penalties on Indian exports.
She added that negotiators from both nations had been engaged "for quite some time, weeks, even months" on a phase one trade deal that was "very, very close" to being finalised just a few days earlier.
"What was left was for there to be some leader-level agreement," she said, implying that Trump’s tariff warning is aimed at pushing discussions "across the last mile" rather than calling off the talks altogether.
The former diplomat described the proposed deal as “unprecedented”, noting that the US and India have not had “any kind of trade architecture in place between them over these many decades.”
(With inputs from agencies)