President Donald Trump indicated Tuesday that he is looking at placing a 20-25 percent tariff on India.
While gaggling aboard Air Force One en route to the United States from Scotland, one reporter asked Trump if he was “tracking” toward a 20-25 percent tariff on India, citing a Reuters report that India was preparing for tariffs that could rise to that figure.
“Yeah, I think so,” he said, adding during a follow-up question that a deal is not finalized.
Regarding a precise rate, Trump said, “We’re going to see.”
“India has been a good friend, but India has charged basically more tariffs than almost any other country… over the years, but now I’m in charge, and you just can’t do that,” he added.
While speaking on trade with India, he noted that Indian Prime Minister Narendra Modi is his friend and expressed his gratitude to both India and Pakistan for coming to a ceasefire at his request earlier this year.
According to Reuters, India is preparing to pay higher tariffs on a short-term basis, and hopes to cut a deal by late summer or the fall:
India is preparing to face higher U.S. tariffs — likely between 20% and 25% — on some of its exports as a temporary measure, as it holds off on fresh trade concessions ahead of Washington’s August 1 deadline, two Indian government sources said.
Instead, New Delhi plans to resume broader trade negotiations when a U.S. delegation visits in mid-August, with the goal of finalising a comprehensive bilateral agreement by September or October, one of the Indian officials told Reuters.
“Talks are progressing well, and a delegation is expected in Delhi by mid-August,” one of the Indian government officials said, adding that President Donald Trump could issue a tariff letter imposing duties of 20 or 25% in a “worst-case scenario”.
The news comes on the heels of Trump’s historic trade deal with the European Union, where the EU will buy $750 billion in American energy, invest $600 billion in American-based companies, open up its markets to the United States, and pay a 15 percent tariff to export goods, other than steel and aluminum, to America. Trump’s 50 percent tariff on all steel and aluminum imports remains in effect.
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