President Donald Trump has indicated that the United States intends to impose tariffs of 25% on goods imported from India, as trade negotiations between the two countries approach a critical deadline. These remarks, made on Tuesday, July 29, 2025, have injected uncertainty into the future of U.S.-India trade relations.
Speaking to reporters, Trump suggested the tariff rate could be between 20% and 25%. While stating that India has been a "good friend," he also asserted that India imposes higher tariffs than almost any other country, a situation he described as unsustainable. The President's statements come as the August 1st deadline looms for the implementation of country-specific tariffs. These levies had been temporarily paused at a reduced rate of 10% to facilitate trade negotiations.
The U.S. and India have yet to reach an agreement on trade, even as several other countries have come to some understanding with the U.S. regarding tariffs and trade policies. U.S. Trade Representative Jamieson Greer said that while India has expressed interest in opening its markets to American goods, more negotiations are needed to assess how ambitious they are willing to be.
In April, the Trump administration announced country-specific duties, initially setting the tariff for Indian imports at 26%. These were then paused in favor of a 10% baseline tariff. The potential 25% tariff now being discussed is slightly lower than the original figure.
India is preparing for the possibility of these higher tariffs as a temporary measure. Rather than offering immediate concessions, India plans to resume comprehensive trade talks in mid-August, coinciding with a visit from a U.S. delegation. Despite the looming deadline and tariff threats, India's Commerce Minister, Piyush Goyal, has voiced optimism about reaching an agreement.
The U.S. imported approximately $87 billion worth of goods from India last year, while exporting about $42 billion. This accounts for 2.4% of overall U.S. trade. The Trump administration has been focused on addressing what it considers to be unfair trade practices and reducing the trade deficit with India, which has roughly doubled over the past decade.
