Trump says US, India still negotiating after 25% US tariff threat

Source: CNA | Original Published At: 2025-07-31 01:06:00 UTC

Key Points

• Trump announced potential 25% US tariff on Indian goods
• Negotiations ongoing despite initial tariff threat
• Tariff linked to India's BRICS alignment and trade barriers
• Deadline for reciprocal tariff deals set for Friday
• Tensions risk undermining US-India strategic partnership

WASHINGTON: United States President Donald Trump said on Wednesday (Jul 30) the US is still negotiating with India on trade after announcing earlier in the day the US would impose a 25 per cent tariff on goods imported from the country starting on Friday.

The 25 per cent tariff, as well as an unspecified penalty announced by Trump in a morning social media post, would strain relations with the world’s most populous democracy.

Later at the White House, the Republican president indicated there was wiggle room.

“They have one of the highest tariffs in the world now, they’re willing to cut it very substantially,” Trump told reporters. “We’re talking to India now – we’ll see what happens … You’ll know by the end of this week.”

The 25 per cent figure would single out India more severely than other major trading partners, and threaten to unravel months of talks between the two countries, undermining a strategic partner of Washington’s and a counterbalance to China.

What the penalty would be was not clear. Trump indicated initially, in a post on the Truth Social website, that the penalty was a response to India buying Russian arms and oil and its “obnoxious non-monetary Trade Barriers”.

When asked about the penalty later at the White House, he said it was partly due to trade issues and partly because of India’s involvement in the BRICS group of developing nations, which he described as hostile to the US.

In July, Trump said the US will impose an additional 10 per cent tariff on imports from any countries aligning themselves with the “Anti-American policies” of the BRICS.

The India announcement came as countries face a Friday deadline to reach deals on reciprocal tariffs or have a Trump-imposed tariff slapped on their exports. The White House launched a blizzard of other trade policy announcements on Wednesday.