Trump Considers Tariff on India

On Tuesday, President Donald Trump hinted he might impose a 20-25% tariff on imports from India.

While traveling on Air Force One from Scotland back to the US, a reporter inquired whether Trump was “tracking” India’s tariffs in that range.

“Yeah, I think so,” he replied.

When asked about the specific percentage, he commented, “We’re going to see it.”

Trump acknowledged India’s tariffs, saying, “India was a good friend, but they’ve basically charged more tariffs than most other countries. I’ve been in charge for many years, but now I am in charge.”

He also noted his friendship with Indian Prime Minister Narendra Modi and expressed gratitude to both India and Pakistan earlier this year following his requests.

According to Reuters, India is preparing for higher US tariffs as a temporary measure while they consider broader trade negotiations. They aim to mitigate high tariffs by the end of summer or fall.

India is readying itself for increased US tariffs on certain exports as a short-term strategy while it holds back on new trade concessions ahead of the August 1 deadline from Washington.

New Delhi intends to resume wider trade talks when a US delegation arrives in mid-August, hoping to finalize a comprehensive agreement by September or October. One Indian official mentioned that President Trump could potentially issue a letter imposing the 20-25% tariff as a “worst-case scenario.”

This development comes shortly after a landmark trade agreement between Trump and the European Union, which includes substantial purchases of American energy and investments in US companies, alongside existing tariffs on steel and aluminum imports.