U.S.-India trade talks in limbo ahead of August deadline
. . . as New Delhi braces for higher U.S. tariffs amid hopes for deal by October
U.S. President Donald Trump said Tuesday that a trade agreement with India has yet to be finalized, warning of potential tariff increases if no deal is reached by the August 1 deadline.
His comments followed a Reuters report indicating that India is prepared to accept U.S. tariffs of 20–25% on its exports in the absence of an agreement, as it delays new concessions.
Speaking aboard Air Force One, Trump stated, “India is a good friend, but they have more tariffs than almost any other country. That will end.”
He reiterated that discussions were still ongoing and emphasized that higher tariffs remain an option if progress stalls.
According to Indian officials, New Delhi intends to resume broader trade negotiations with Washington in mid-August when a U.S. delegation visits India.
The aim is to finalize a comprehensive bilateral trade agreement by October. One Indian official noted that while the U.S. may impose tariffs in the “worst-case scenario,” the five rounds of talks so far have been constructive.
The Indian government believes any tariff measures would be temporary, with expectations of an eventual agreement. The source, who requested anonymity, highlighted the positive trajectory of negotiations despite current setbacks.
