Former U.S. President Donald Trump has warned that India could face tariffs as high as 20% to 25% as part of a broader effort to enforce what he calls “reciprocal trade practices.” The warning comes just days ahead of an August 1 deadline, when a new wave of U.S. tariffs is set to take effect on dozens of countries.
Speaking to reporters aboard Air Force One while returning from a five-day trip to Scotland, Trump reiterated his criticism of India’s trade policies. “India has been a good friend,” he said, “but India has charged basically more tariffs than almost any other country. You just can’t do that.”
Although Trump did not confirm the exact rate, he acknowledged that 20% to 25% is under consideration, adding that final decisions had not yet been made as negotiations with New Delhi continue.
The potential tariff hike stems from Trump’s previously announced plan in April to impose reciprocal duties on countries he believes maintain unbalanced trade relationships with the United States. While those tariffs were initially set at 10%, Trump delayed their implementation to allow room for bilateral talks.
So far, only a few limited deals have been secured, and India remains a focal point of the unresolved discussions. According to U.S. Trade Representative Jamieson Greer, more time is needed to assess India’s openness to allowing increased American exports into its markets.
Meanwhile, Reuters reported that Indian officials are already bracing for the possibility of a tariff hike, expecting the final rate to fall somewhere between 20% and 25%, should talks fail.
The looming deadline and Trump’s sharp rhetoric underscore the growing tensions in U.S.-India trade relations, even as both countries continue to label each other as key allies in strategic partnerships.