Hours later, the Ministry of Commerce and Industry stated that the federal government was “learning the implications” of Mr. Trump’s announcement and can “take all steps essential to safe our nationwide curiosity”.
India and the U.S. have been negotiating a possible Bilateral Trade Agreement (BTA) since February, when a joint assertion by Prime Minister Narendra Modi and Mr. Trump acknowledged that such a deal can be concluded by fall 2025.
Also Read | Trump needs name with PM Modi earlier than closing approval on India-U.S. commerce deal
No mini-deal
Apart from that complete deal, negotiators from the 2 international locations have additionally been attempting to work out a “mini-deal” that may stroll again the retaliatory tariffs that Mr. Trump introduced for India and numerous different international locations.
This mini-deal, nevertheless, has not but been finalised. Statements by U.S. Trade Representative Jamieson Greer on Monday (July 28, 2025) additionally indicated that negotiations with India might lengthen past the August 1 deadline set by Mr. Trump. The U.S. President’s assertion on Wednesday (July 30, 2025), nevertheless, appears to substantiate that such a mini-deal won’t materialise.
Also Read | Trump hints at 20-25% tariff on India, once more claims credit score for ceasefire between India and Pakistan
‘Strenuous and obnoxious’
“Remember, whereas India is our good friend, we’ve got, over time, finished comparatively little enterprise with them as a result of their tariffs are far too excessive, among the many highest on this planet, and so they have probably the most strenuous and obnoxious non-monetary commerce limitations of any nation,” Mr. Trump wrote on the social media platform Truth Social.
“Also, they’ve all the time purchased a overwhelming majority of their navy gear from Russia, and are Russia’s largest purchaser of ENERGY, together with China, at a time when everybody needs Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST [sic],” he added.
This tariff price is marginally decrease than the sooner 26% tariff that Mr. Trump had threatened to levy on imports from India. The extra “penalty” is now the unknown issue, nevertheless, as Mr. Trump didn’t specify what kind it is going to take.
‘Studying implications’
In its assertion, the Commerce Ministry stated that the federal government has taken observe of Mr. Trump’s assertion on bilateral commerce. “The Government is learning its implications. India and the US have been engaged in negotiations on concluding a good, balanced and mutually helpful bilateral commerce settlement over the previous few months. We stay dedicated to that goal. The Government attaches the utmost significance to defending and selling the welfare of our farmers, entrepreneurs, and MSMEs,” it stated.
“The Government will take all steps essential to safe our nationwide curiosity, as has been the case with different commerce agreements together with the newest Comprehensive Economic and Trade Agreement with the UK,” it added.
Also Read | U.S. commerce offers with Japan, Indonesia maintain classes, warnings for India: consultants
Retaliatory tariffs
In early April, the U.S. President had imposed retaliatory ‘Liberation Day’ tariffs on imports from most international locations on this planet, arguing that these international locations imposed a lot larger tariffs on U.S. items than the U.S. did on imports from them. Thereafter, he introduced a 90-day pause, in order to work out bilateral commerce offers with a number of of those international locations.
At the tip of the 90-day pause in July, Mr. Trump additional prolonged this window to August 1. During this era, he issued letters to at the least 14 international locations stating the tariffs that may be imposed on imports from them.
Also Read | India-U.S. commerce deal: Deadlock over agri continues, however Trump shock not dominated out
Making offers with Trump
Over the final month, he has additionally concluded offers with the United Kingdom (U.Okay.), Indonesia, the Philippines, Japan, and the European Union. The take care of the U.Okay. will see British automotive exports to the U.S. entice a ten% tariff, down from the sooner 27.5% and a removing of tariffs on aerospace exports to the U.S.
Indonesia’s exports to the U.S. will now entice a 19% tariff below its take care of the U.S., the identical as shall be charged on U.S. imports from the Philippines. Japan negotiated decrease tariffs of 15% for its exports to the U.S., the identical because the European Union.
