US President Donald Trump said his administration was still negotiating the final tariff rate with India after announcing a 25 per cent tariff rate.
Although Trump described India as a 'friend', he criticised the country for having 'among the highest tariffs in the world.'
India and the US are currently negotiating a Bilateral Trade Agreement (BTA), which was launched in February 2025 during Prime Minister Narendra Modi’s visit to the White House.
A day after announcing a 25 per cent tariff rate on India alongside an unspecified 'penalty' tariff for purchasing Russian energy and arms, US President Donald Trump said his administration was still negotiating the final tariff rate with India.
"Well, we’re negotiating right now", Trump told a reporter who had asked what the additional penalty would be for India for 'support to Russia.'
Right ahead of the reciprocal tariffs deadline, 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.
In a post on social media, Trump said that the US has a massive trade deficit with India and also criticised India for buying a “vast majority" of its military equipment and energy from Russia as he announced a 25 per cent tariff on India.
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.
India and the US are currently negotiating a Bilateral Trade Agreement (BTA), which was launched in February 2025 during Prime Minister Narendra Modi’s visit to the White House.
Trump Is Frustrated: White House Official
In view of the tariff-related development, National Economic Council Director Kevin Hassett said Trump is 'frustrated' with the lack of progress on trade talks with India and feels that the 25 per cent tariff imposed on the country will 'address and remedy' the situation.
“Well, India has had a market that's been pretty much closed to American products, and we've been wide open to theirs. And I think President Trump is frustrated with the progress we've made with India, but feels that a 25 per cent tariff will address and remedy the situation in a way that's good for the American people”, Hassett said in the White House, as per PTI.
