US President donald trump left for the US on 30 July 2025 from his 4-day scotland tour. Meanwhile, he spoke to reporters on air Force One and answered questions related to tariffs. Talking specifically about questions related to india, he said that india has been a good friend, but it imposes more tariffs on the US than almost any other country. You can't do that. When asked if it is possible to impose a 20%-25% tariff on India? trump replied, I think so. However, he also said that no final decision has been taken yet.
This statement from US President donald trump has come at a time when talks are going on between india and the US regarding the trade agreement before the august 1 deadline, but no concrete result has been achieved so far. The trump administration wants to bring tariff rates to the same level for countries around the world under the “Reciprocal Tariffs” i.e. reciprocal tariff policy. On July 23, trump also said that the US will not keep tariffs less than 15% for any country. He alleges that economies like india impose higher duties on American products, while the US market is open for them. Under this policy, countries like india are considered unfair trading partners of the US, unless they reduce tariffs.
Negotiations between india and the US continue
The indian government is trying to reach an agreement before the deadline of august 1. The indian delegation led by Rajesh Aggarwal has completed 5 rounds of talks in Washington in July. The talks lasted for four days, but no success has been achieved. Agriculture, automobile, wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital trade were important issues in the talks. According to PTI, those participating in the talks from the US side informed that the next round of talks is likely to take place after august, i.e. after the deadline ends.
What does India-US trade tension mean?
The relationship between india and the US is strategically strong, but there has been tension on the trade front for a long time.
The potential impact of Trump's warning can be felt in many sectors, which are as follows-
Pressure on indian exporters will increase (especially steel, aluminum, textile sector.
Bilateral differences may deepen over IT services and data policy.
Strategic partnerships such as defense and Quad cooperation may be affected.
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