Right ahead of the reciprocal tariffs deadline, US President Donald Trump on Monday said that the trade agreement with India has not yet been finalised and hinted that India could face import duties as high as 25 per cent.
The announcement came just two days before the August 1 deadline to impose reciprocal tariffs.
"I think so. (They will pay) 25%," Trump told reporters on Tuesday when asked if that was a possible tariff rate for New Delhi.
"India has been a good friend, but India has charged basically more tariffs than almost any other country. You just can't do that", Trump told reporters, as per media reports.
In recent weeks, the US president has been repeating that both sides were close to striking a trade agreement.
Reuters reported that New Delhi was preparing for potential 20-25 per cent US tariffs on select exports if a deal is not finalised by the August 1 deadline.
"Talks are progressing well, and a delegation is expected in Delhi by mid-August," one Indian official told Reuters while adding that Trump could still issue a formal tariff notification imposing duties of up to 25% in a "worst-case scenario."
"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 told Reuters.
As per reports, the Indian government is working toward a comprehensive bilateral trade agreement by September or October while still remaining firm in its stance against the import of genetically modified crops like soybean and corn.
Expressing an optimistic tone, India’s Commerce and Industry Minister Piyush Goyal also said last week that progress in the ongoing trade discussions has been "fantastic."
On Monday, the US President hinted at a bigger tariff strategy, saying that most countries without bilateral trade deals could soon face US tariffs ranging from 15 per cent to 20 per cent.
