July 30, 2025

In recent discussions, US President Donald Trump has confirmed that the trade deal between the United States and India has not yet been finalized. With only two days remaining until the self-imposed tariff deadline of August 1, 2025, Trump's comments carry significant implications for the ongoing trade negotiations. During a press interaction, Trump stated, "India trade deal not been finalized." This statement raises concerns as he hinted at potential tariff rates of 20-25% on Indian exports to the US, underscoring the urgency and complexity of the negotiations. Trump expressed a level of affection towards India, noting, "India is my friend. They ended the war with Pakistan at my request..." However, he acknowledged that India has maintained higher tariffs than most countries. Despite these friendly overtones, he cautioned that the specific tariff rates are still being discussed as negotiations are in progress. Over the past few weeks, Trump has indicated that the US is close to reaching a deal with India. However, as the deadline looms, the likelihood of announcing an interim trade agreement appears to be diminishing. Reports from Reuters suggest that Indian officials are preparing for elevated tariffs on certain export items, indicating a probable temporary reciprocal tariff range of 20-25%. This assessment reflects India’s anticipation of facing increased duties, as negotiations continue. An Indian government official remarked, "Talks are progressing well, and a delegation is expected in Delhi by mid-August." They further expressed optimism that the tariff imposition might only be a temporary measure, given the five rounds of trade discussions held to date. Compounding the uncertainty, a recent statement from US Trade Representative Jamieson Greer emphasized the need for further negotiations, suggesting that significant work remains before a comprehensive trade agreement can be realized. Reports state that despite India's early initiation of trade talks, the country has remained steadfast regarding its protectionist stances, especially related to its agricultural and dairy sectors. Greer articulated that the US is still engaging constructively with Indian counterparts and that mutual interests will be prioritized in the discussions. However, he emphasized the need for more negotiating effort to determine India's willingness to modify its market regulations. Meanwhile, India's Commerce Minister Piyush Goyal has expressed a positive outlook about the trade talks, asserting that the discussions will cater to India's national interests, while also aiming to avert the imposition of the anticipated 26% tariffs. He reaffirmed that the ongoing conversations have intentionally avoided contentious topics such as immigration policies, emphasizing that trade agreements require thoughtful consideration rather than abrupt deadlines. As both countries inch closer to potential consensus, the path remains fraught with challenges. It is clear that both nations are working diligently to navigate the complexities of trade regulations and economic policies in order to secure a beneficial agreement. However, as Trump’s remarks suggest, a final resolution remains elusive as the August 1 deadline approaches.

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Tags: India, Usa, Trade deal, Tariffs, Donald trump,