Trump says India may pay 20% to 25% tariff, trade deal not finalised
The levy has not been decided as the two countries are negotiating the agreement ahead of the August 1 deadline, said the US president.

United States President Donald Trump said on Tuesday that the trade deal with India had not been finalised and New Delhi could be hit with a tariff rate of 20% to 25%, Bloomberg reported.
Trump added that the final rate of levy had also not been finalised as India and the US were negotiating the agreement ahead of the August 1 deadline.
“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 Scotland. “You just can’t do that.”
Trump made the comments while responding to reporters’ questions about the so-called reciprocal tariffs Washington plans to reimpose on dozens of countries that have not negotiated separate trade agreements with the US by August 1.
#WATCH | When asked if India is going to pay high tariffs, between 20-25%, US President Donald Trump says, "Yeah, I think so. India is my friend. They ended the war with Pakistan at my request...The deal with India is not finalised. India has been a good friend, but India has… pic.twitter.com/IYxParZqce
— ANI (@ANI) July 29, 2025
Trump announced higher levies in April, before pausing those tariffs at a reduced 10% rate to allow time for negotiations. Despite an extended deadline, Trump has only secured a handful of deals.
On Monday, the US president had said that he would likely introduce a global baseline tariff between 15% and 20% for countries that had not negotiated trade deals with his administration.
Trump’s so-called reciprocal tariffs had taken effect on April 9. Hours later, however, he reduced the rates on imports from most countries to 10% for 90 days to provide time for trade negotiations.
In February, Washington had already imposed a 25% tariff on a range of products from Canada, Mexico and China.
The US president had repeatedly said that he intended to impose a reciprocal tax on several nations, citing high tariffs the countries imposed on foreign goods.
The tariff plans have led to concerns of a broader trade war that could disrupt the global economy and trigger a recession.
Earlier this month, Trump had also said that the US was very close to a trade deal with India.
Trump had said on June 27 that New Delhi could sign a “very big” trade deal with Washington soon. On July 2, the White House said that the deal was close to being finalised and would be announced soon.
An Indian team led by Union Commerce Minister Piyush Goyal had visited the US in May to negotiate the agreement. Following this, a team of negotiators from the US was in India for a week in June.