Trump says

India may encounter tariffs up to 25%if it fails to finalize the trade deal with the United States this week, said President Donald Trump.

“Yes, I think so,” he told reporters on Tuesday when he asked him if Delhi would encounter higher tariffs in the absence of an agreement.

The United States has set a deadline for August 1 for India and several other countries to reach a trade agreement, or to face increased rates.

Indian and US officials have negotiated for a commercial deal in the last few months, but employees have alternated between optimistic optimistic and cautiously when it will be announced.

Asked what he expects from a potential deal with India, Trump said: “We will see. India is a good friend, but India has raised more tariffs than almost any other country.”

“But now I’m in the lead and you just can’t do it,” he added.

The BBC contacted the Ministry of Trade in India for comment.

Tariffs are taxes charged on goods imported from other countries. The President of the United States has repeatedly turned to India’s high tariffs, marking him the “Tariff King” and a “big abuser” of commercial ties.

Trump has not yet sent a letter to India, which defines a new tariff rate – as with more than a dozen other trading partners.

In April, Trump announced Rates up to 27% for Indian goodswhich was later stopped.

Since then, both parties have been competing to negotiate an agreement, with employees sometimes sounding positive and at other times being measured.

“We continue to talk to our Indian counterparts. We have always had many constructive discussions with them,” said US sales representative Jamison Greer earlier this week.

He also admitted that although he said earlier, a deal with India could be “inevitable”, it must be understood that Delhi’s trade policy was “Protectionist for a very long time“and” is “mainly to protect their internal market.”

Greer added that Trump is focused on providing deals that significantly open other markets to the United States.

Agriculture and dairy products are among the main adhesive points for both countries.

Years, Washington insisted on a great access to the Farm sector in Indiaseeing it as a major unused market. But India protected her furiously, citing food security, livelihood and the interests of millions of small farmers.

Last week, Indian Trade Minister Pius Goyal told CNBC that The agricultural sector is sensitive to India And that it will ensure that the interests of farmers are “well protected”.

Goyal also told news agencies that India remains “optimistic” To achieve a deal with Washington soon.

Speaking to Reuters, he said that India is making “fantastic progress” in negotiations with the United States and that he hopes that they can “end a very subsequent partnership.”

Until recently, the US was the largest trading partner in India, with bilateral trade reached $ 190 billion in 2024. Trump and Modi set a goal to double that figure to $ 500 billion.

India has already reduced the tariffs of a number of goods – including whiskey from bourbon and motorcycles – but the US continues to manage a $ 45 billion trade deficit ($ 33 billion) with India, which Trump is eager to reduce.

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