Trump Warns India of 25% Tariff Amid Ongoing Trade Talks

Photo : AFP

Washington, D.C. – Former U.S. President Donald Trump has warned that India may face higher tariffs—possibly between 20% and 25%—as trade negotiations between the two countries continue. Trump made this statement while flying back to Washington from a recent visit to Scotland aboard Air Force One.

“India has been a good friend, but India has charged basically more tariffs than almost any other country,” Trump told reporters. “You just can't do that.”

The warning comes ahead of an important August 1 deadline, when the U.S. is expected to put in place a new list of reciprocal tariffs—taxes that would apply to goods coming from several countries, including India. These tariffs are part of Trump’s larger plan to make trade with the United States more equal, or as he calls it, “fair trade.”

What Are Tariffs?

Tariffs are taxes a country places on goods that come from another country. When a product enters a country, the government can charge a fee. This makes the product more expensive for local buyers. The idea is to protect local businesses and make foreign companies pay more if they want to sell in that country.

Why Is Trump Upset?

Trump believes that India charges too many taxes on American goods. He says that U.S. products face high costs when entering the Indian market, while Indian goods can enter the U.S. at much lower tax rates. He wants that to change.

Stay informed with the latest news. Follow DXB News Network on WhatsApp Channel  

Trump had already announced higher tariffs in April, but he put those plans on hold. Instead, he lowered the tariffs to 10% to give more time for discussions with India and other countries. Now, with the new deadline coming up, he is thinking about raising them again—unless a new deal is reached soon.

What Is India Saying?

According to news reports, India is preparing for the possibility that higher tariffs may happen. New Delhi is aware that tariffs may go up to 25%, and officials are working to protect the Indian economy and trade.

Trade Talks Still Going On

U.S. Trade Representative Jamieson Greer said that the talks with India are still in progress. “We need more time to see if India is ready to open its market more to American products,” he said on Monday.

So far, the U.S. has made trade deals with only a few countries. India is a big and important trading partner, so both sides are trying to avoid a trade war.

Why Does This Matter?

Trade between India and the U.S. is very large. Both countries sell and buy goods worth billions of dollars every year. If tariffs increase, prices of many products could rise, and businesses in both countries might be affected.

Some examples of things that could become more expensive include:

• Electronics
• Clothing
• Pharmaceuticals
• Agricultural goods

What’s Next?

The deadline is August 1. If no new agreement is reached by then, higher tariffs could start right away. This would make trade between the U.S. and India more difficult and more expensive.

Experts believe that both sides want to make a deal, but time is running out. People in both countries are hoping that their leaders can find a solution that helps businesses and keeps prices low.

DXB News Network will continue to follow this story and provide updates as more information becomes available.

Stay tuned on www.dxbnewsnetwork.com for the latest developments on global trade and diplomacy.