Trump threatens 25% tariffs on Indian imports as trade talks stall

In a fresh warning that could escalate trade tensions between Washington and New Delhi, US President Donald Trump has signaled that Indian imports may face tariffs as high as 25% if the two countries fail to clinch a long-pending trade agreement.

“They are going to pay 25%,” Trump told reporters. When asked directly whether Indian goods would be hit with tariffs between 20% and 25%, he said, “Yeah, I think so. India has been; they’re my friends.”

While Trump softened the remark with a reference to friendship, the threat underscores his administration’s growing impatience over the slow progress in US-India trade negotiations. Talks have dragged on for months, with the US pressing for broader access to Indian markets, particularly for American agricultural products, medical devices, and tech exports.

“We need some more negotiations on that with our Indian friends to see how ambitious they want to be,” US Trade Representative Jamieson Greer was quoted as saying by CNBC, adding that India had shown “strong interest” in opening parts of its market.

Indian officials have remained cautiously optimistic. Last week, Commerce Minister Piyush Goyal expressed hope that a deal could be finalized ahead of Trump’s self-imposed August 1 deadline. However, no formal agreement appears imminent, and neither side has publicly outlined the key sticking points.

This isn’t the first time Trump has wielded tariffs as leverage. On April 2, he imposed 26% duties on select Indian goods but later paused their implementation. Though no formal tariff notice has been issued this time, his latest comments suggest India could soon be targeted if talks falter.

Underlying the dispute is a growing trade imbalance. In 2024, the US imported $87.4 billion worth of goods from India — including pharmaceuticals, smartphones, and textiles — while India bought just $41.8 billion in American exports. That left the U.S. with a $45.7 billion trade deficit.

As Trump continues to pursue what he calls “reciprocal” trade, India may find itself under renewed pressure to make concessions — or risk a new wave of tariffs from one of its largest trading partners.