Trump says India would possibly resist 25% duties if deal not agreed

[ad_1] India may face tariffs as excessive as 25% if it fails to finalise a commerce take care of the US this week, President Donald Trump has mentioned.

"Yeah, I believe so," he advised reporters on Tuesday when requested whether or not Delhi would face increased tariffs within the absence of an settlement.

The US has set a 1 August deadline for India and several other different international locations to both attain a commerce settlement or face elevated tariffs.

Indian and American officers have been negotiating a commerce deal for the previous few months, however officers have alternated between sounding optimistic and cautious about when will probably be introduced.

When requested about what he anticipated from a possible take care of India, Trump mentioned: "We will see. India has been an excellent pal, however India has charged mainly extra tariffs than nearly some other nation".

"However now I am in cost, and also you simply cannot do this," he added.

The BBC has reached out to India's commerce ministry for a remark.

Tariffs are taxes charged on items imported from different international locations. The US president has repeatedly taken purpose at India's excessive tariffs, branding it a "tariff king" and a "massive abuser" of commerce ties.

Trump has not but despatched a letter to India setting a brand new tariff price - as he has with greater than a dozen different buying and selling companions.

Again in April, Trump had introduced tariffs of as much as 27% on Indian items, which was later paused.

Since then, each side have been racing to barter an settlement, with officers generally sounding constructive and at different instances, measured.

"We proceed to talk with our Indian counterparts. We have all the time had very constructive discussions with them," US Commerce Consultant Jamieson Greer mentioned earlier this week.

He additionally acknowledged that though he had earlier mentioned a take care of India is perhaps "imminent", it wanted to be understood that Delhi's commerce coverage has been "protectionist for a really very long time" and has been "premised on strongly defending their home market".

Greer added that Trump has been targeted on securing offers that considerably open different markets to the US.

Agriculture and dairy are among the many key sticking factors for each international locations.

For years, Washington has pushed for better entry to India's farm sector, seeing it as a significant untapped market. However India has fiercely protected it, citing meals safety, livelihoods and the pursuits of thousands and thousands of small farmers.

Final week, Indian Commerce Minister Piyush Goyal advised CNBC that the agriculture sector is delicate for India and that it's going to be sure that farmers' pursuits are "effectively protected".

Goyal additionally advised information businesses that India stays "optimistic" about hanging a take care of Washington quickly.

Chatting with Reuters, he mentioned that India was making "incredible progress" in talks with the US and that he hoped they have been in a position to "conclude a really consequential partnership".

Till lately, the US was India's largest buying and selling companion, with bilateral commerce reaching $190bn in 2024. Trump and Modi have set a goal to greater than double this determine to $500bn.

India has already decreased tariffs on a variety of products - together with Bourbon whiskey and bikes - however the US continues to run a $45bn (£33bn) commerce deficit with India, which Trump is eager to cut back.