Bangla Press Desk: US President Donald Trump said that India may be hit with a tariff rate of 20% to 25% but cautioned the final levy had still not been finalised as the two countries negotiate on a trade deal ahead of a 01 august deadline.
“I think so,” he told reporters on July 29 when asked if that was a possible tariff rate for New Delhi.
“India has been a good friend, but India has charged basically more tariffs than almost any other country,” Trump said aboard Air Force One as he returned to Washington from a five-day visit to Scotland. “You just can’t do that.”
His comments came before the start of the business day in India, and there has been no official response yet from Indian Prime Minister Narendra Modi’s government.
Bloomberg reported earlier in July that the US and India were working toward an agreement that would reduce proposed tariffs to below 20%, even as Modi’s administration resisted demands to open up the agricultural and dairy sectors.
Although Indian officials have expressed optimism on reaching a deal, relations with the US have hit some turbulence in recent months.
Trump’s insistence that his trade threats prompted India and Pakistan to reach a ceasefire in April incensed officials in New Delhi, and the US president has also threatened “secondary tariffs” on India, China and other buyers of Russian oil if President Vladimir Putin doesn’t end hostilities with Ukraine.
Reuters reported earlier on July 29 that New Delhi is bracing for higher tariffs, likely between 20% and 25%.
India has conveyed to the Trump administration the red lines it will not breach in finalising an agreement, officials familiar with the matter said in July.
New Delhi will not allow the US to export genetically modified crops to the country, and is unwilling to open widely its dairy and automobile sectors, the people said, asking not to be identified because the discussions are private.
Modi’s government has taken a more cautious stance as it faces pressure to protect India’s politically sensitive farm sector.
Millions depend on agriculture for their livelihoods and farmers form a key voting bloc for Modi’s party, which faces a crucial state election in the coming months.
India and the US have already signed terms of reference for a bilateral trade deal, and have been negotiating an interim agreement that New Delhi hoped would give it a reprieve from higher US import duties.
The President was commenting ahead of a 01 August deadline when a slew of so-called reciprocal tariffs are set to take effect on dozens of trading partners. Trump announced higher levies in April, before pausing those tariffs at a reduced 10% rate to allow time for negotiations.
