'India a good friend but...': Deal delayed, Trump eyes 20-25% tariff on Indian goods

President Donald Trump said India could face a tariff rate of 20% to 25%, but cautioned that the final decision has not yet been made as both countries continue negotiating a trade deal ahead of the August 1 deadline.

“I think so,” Bloomberg quoted Trump as telling 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,” Trump said aboard Air Force One as he returned to Washington from a five-day visit to Scotland.

“You just can’t do that,” he added.

US Trade Representative Jamieson Greer told CNBC on Monday that an elusive India trade agreement would require more discussion between the two countries.

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“They have expressed strong interest in opening portions of their market, we of course are willing to continue talking to them,” CNN quoted Greer as saying.

“But I think we need some more negotiations on that with our Indian friends to see how ambitious they want to be,” Greer added.

President Trump has continued to push US trade partners to open previously restricted markets to American goods, and India is no exception.

While neither Washington nor New Delhi has outlined specific points of contention, Indian Commerce Minister Piyush Goyal last week expressed optimism about concluding a deal with the US before Trump’s self-imposed August 1 deadline.

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Although India has not yet received a formal tariff warning letter — a tactic Trump has used with over a dozen other countries — the president set tariffs on Indian goods at 26% on April 2, before putting the “reciprocal” levies on hold during negotiations.

Trump has frequently criticised India over its trade practices.

“They charge more tariffs than any other country,” he had said on February 13, just hours before meeting Prime Minister Narendra Modi.

He has also described the US-India trade relationship as “very tough,” citing a growing trade deficit that has nearly doubled over the past decade.

The White House’s concerns extend beyond tariffs.

According to CNN, Trump administration officials have repeatedly flagged non-tariff trade barriers in India, including taxes on digital services and what they describe as “uniquely burdensome” import regulations and testing requirements.

The United States imported $87 billion in goods from India in 2024, while India imported $42 billion worth of goods from the US, added the report, citing US Commerce Department data.

Major US imports from India include pharmaceuticals, communications equipment such as smartphones, and apparel.

As the August deadline looms, negotiations remain active — but final decisions on tariffs or trade terms, as with other partners, rest with President Trump.

With inputs from agencies