'They are going to pay 25%': Donald Trump warns India as trade deal deadline looms
Trump has long criticized India’s trade practices, calling the relationship “very tough” and blasting what he views as excessive tariffs and non-tariff barriers.
- Jul 30, 2025,
- Updated Jul 30, 2025 6:45 AM IST
President Donald Trump has threatened to slap tariffs as high as 25% on Indian imports if the two sides fail to reach a long-promised trade deal.
“They are going to pay 25%,” Trump told reporters, responding to questions about whether India would face new levies. “Yeah, I think so. India has been – they’re my friends.”
The threat comes ahead of Trump’s self-imposed August 1 deadline for a deal, though no official tariff letter has yet been issued. A prior 26% rate was set on April 2 but paused, pending negotiations.
Trump has long criticized India’s trade practices, calling the relationship “very tough” and blasting what he views as excessive tariffs and non-tariff barriers. “They charge more tariffs than any other country,” he said earlier this year.
US Trade Representative Jamieson Greer said the countries still have significant ground to cover. “They have expressed strong interest in opening portions of their market,” he said on CNBC. “But I think we need some more negotiations on that with our Indian friends.”
India had recently expressed optimism about reaching a deal, but foreign minister S. Jaishankar downplayed Trump’s May claim that India had agreed to zero tariffs on US exports. He called the talks “complicated” and “intricate.”
Last year, the US imported $87 billion in goods from India, primarily pharmaceuticals, smartphones, and apparel, while exporting $42 billion in return. The White House has taken particular aim at India’s taxes on digital services and what it describes as “uniquely burdensome” testing rules on foreign goods.
For now, both nations remain locked in tense negotiations, with the threat of sweeping tariffs looming large.
President Donald Trump has threatened to slap tariffs as high as 25% on Indian imports if the two sides fail to reach a long-promised trade deal.
“They are going to pay 25%,” Trump told reporters, responding to questions about whether India would face new levies. “Yeah, I think so. India has been – they’re my friends.”
The threat comes ahead of Trump’s self-imposed August 1 deadline for a deal, though no official tariff letter has yet been issued. A prior 26% rate was set on April 2 but paused, pending negotiations.
Trump has long criticized India’s trade practices, calling the relationship “very tough” and blasting what he views as excessive tariffs and non-tariff barriers. “They charge more tariffs than any other country,” he said earlier this year.
US Trade Representative Jamieson Greer said the countries still have significant ground to cover. “They have expressed strong interest in opening portions of their market,” he said on CNBC. “But I think we need some more negotiations on that with our Indian friends.”
India had recently expressed optimism about reaching a deal, but foreign minister S. Jaishankar downplayed Trump’s May claim that India had agreed to zero tariffs on US exports. He called the talks “complicated” and “intricate.”
Last year, the US imported $87 billion in goods from India, primarily pharmaceuticals, smartphones, and apparel, while exporting $42 billion in return. The White House has taken particular aim at India’s taxes on digital services and what it describes as “uniquely burdensome” testing rules on foreign goods.
For now, both nations remain locked in tense negotiations, with the threat of sweeping tariffs looming large.