Deals working out very well: Trump on India-US trade deal, hints at 20-25 per cent tariff

WASHINGTON: Just days ahead of the self-imposed August 1 deadline date before the tariffs come into effect, US President Donald Trump stated that the India-US trade deal was “working out very well”, but hinted at a 20 per cent to 25 per cent tariff on New Delhi.

During a gaggle with the press interaction aboard Air Force One on Tuesday (local time), Trump responded to a report suggesting that India might be preparing for 20 to 25 per cent tariffs, stating that India had been imposing higher tariffs on the US as compared to other countries. He further mentioned that all this would come to an end as he is now “in charge”.

However, Trump hasn’t sent any letters to India announcing the tariff imposed on New Delhi, as he did for many other nations. “India has been a good friend. But India has charged basically more tariffs than almost any other country over the years. But now, I’m in charge and you just can’t do that. I think the trade deals are working out very well. Hopefully for everybody, but for the United States, they’re very, very good”, the US President said.

#WATCH | When asked if India is going to pay high tariffs, between 20-25%, US President Donald Trump says, “Yeah, I think so. India is my friend. They ended the war with Pakistan at my request…The deal with India is not finalised. India has been a good friend, but India has… pic.twitter.com/IYxParZqce

— ANI (@ANI) July 29, 2025

On April 22, Trump imposed a tariff of 26 per cent on Indian goods imported to the US, before announcing a pause on those “reciprocal” levies.

Meanwhile, the Union Minister for Commerce, Piyush Goyal, on Sunday, stated that the trade discussion between India and the US had been going “very well”. “India today negotiates from a position of strength, a position of confidence. It is this very confidence that continuously encourages us to make good free trade agreements… Our discussions with the United States are progressing very well,” he stated.

Foreign Secretary Vikram Misri, during PM Modi’s visit to the UK last week, also stated that India had been actively engaged in discussions with the US on a potential Bilateral Trade Agreement (BTA), emphasising the ongoing contacts with partners in the US.

During a press conference following the signing of the India-UK Free Trade Agreement, Misri stated, “We are discussing that under a different vertical. All I can say is that our engagement is underway. The contacts are underway, and we’ll see how that goes.”

On July 14, a senior government official stated that India was making concrete progress toward finalising a BTA with the US, with both countries committed to following the path outlined by their respective leaders. Speaking on the ongoing trade negotiations, the official emphasised that India is “moving in terms of a BTA” and actively “looking at a mutually beneficial deal” that would serve the interests of both nations.

Trump also used the opportunity to once again claim credit for his role in brokering the ceasefire agreement between India and Pakistan, following the recent conflict in May. The conflict was triggered by the April 22 Pahalgam terror attacks, which killed 26 people, and India’s subsequent response, ‘Operation Sindoor,’ involving precision strikes on nine terror camps in Pakistan and Pakistan-occupied Jammu and Kashmir (PoJK).

He also praised India’s leadership under Prime Minister Narendra Modi for its role in regional stability. “Look, India, they’re my friends and he’s (PM Modi) my friend and you know they ended the war with Pakistan and by request and it was great and Pakistan did also. We did a lot of great settlements”, he said.

India had reportedly refuted the claims made by the US president, noting that it was Pakistan’s Director General of Military Operations (DGMO) who contacted their Indian counterpart to request an end to hostilities, following which the ceasefire was then agreed upon. (ANI)