US President Donald Trump on July 29 hinted at India facing tariffs as high as 25 percent since the proposed trade deal between them is unlikely to be finalised by August 1.
Trump’s reciprocal tariffs will kick in from August targeting nations with whom the US hasn't yet reached a trade deal.
Responding to a question on whether the United States may impose tariffs between 20-25 percent on India, Trump said, "Yeah, I think so. They (India) are my friend and he (Prime Minister Narendra Modi) is my friend," adding that the trade deal has not been finalised.
"India has charged basically more tariffs than almost any other country....over the years...you just can't do that," Trump said.
India and the US have been working towards finalising a first tranche of a Bilateral Trade Agreement (BTA) by September or October.
A team of negotiators from the US government is expected to visit New Delhi in the second half of August to hold the next round of talks for the BTA.
The fifth round of talks between the two countries concluded earlier in July in Washington.
To be sure, these tariffs, if implemented from August 1 could be temporary if India and US agree to a trade deal.
The US has brokered trade deals with a few nations and blocs including European Union, Vietnam and Indonesia.
Talking to reporters on July 26, Union Commerce and Industry Minister Piyush Goyal said discussions with the United States on the proposed bilateral trade agreement are progressing swiftly.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
