Donald Trump’s BIG warning on India tariffs ahead of August 1 deadline; ‘India a good friend, but…’

US President Donald Trump said that Indian products could soon face higher taxes up to 25 per cent when sold in the United States, if both countries fail to settle their trade differences soon. “They will have to pay 25%,” Trump told reporters, as reported by CNN. When asked him if India might face tariffs between 20 per cent and 25 per cent, Trump said, “Yes, I think so. India has been my friend, but still…”

He added that India has been a good partner, but he feels the country charges higher taxes on U.S. products than most others. “India puts more tariffs on us than almost any other country. That’s not fair,” Trump said while flying back to Washington from Scotland.

If the U.S. does put a 20–25 per cent tax on Indian goods, including a basic 10 per cent starting rate, India could still have an edge over Bangladesh in the textile business. However, countries like Vietnam (20 per cent), Indonesia (19 per cent), the European Union and Japan (15 per cent each), and the UK (10 per cent) would still be in a better position. Right now, Chinese goods entering the U.S. are taxed the most, at 30 per cent.

Back in April, Trump had already imposed a 26 per cent tax on Indian imports, but later paused that decision, calling them “reciprocal tariffs.”

India-US trade deal talks: What’s happening?

India and the United States have been trying to work out a trade agreement for several months, but they haven’t reached a final deal yet. President Trump has been asking for better access for American products in India, something he has pushed for in other trade deals too.

As the August 1 deadline gets closer, India is making efforts to finalize the deal. Officials from both countries are constantly talking and negotiating.

However, the U.S. Trade Representative, Jamieson Greer, said in an interview with CNBC that the talks might still need more time.

India’s negotiating team, led by Rajesh Agrawal, was in Washington in July for the fifth round of discussions. The talks lasted four days, but no major progress was made.

Now, a team of U.S. negotiators is expected to visit India in the second half of August for the next round of talks, according to news agency PTI.

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