Trump Leaves Room Open for Talks on India Tariffs: ‘We Will See…’
The Indian government has stated that it is examining the consequences of US President Donald Trump’s announcement to impose 25 per cent tariffs on Indian exports, along with a penalty starting August 1.
After declaring a 25% duty on Indian goods, US President Donald Trump appeared to soften his position and indicated a willingness to hold discussions with India regarding the trade pact.
Citing the BRICS grouping and the “massive” trade imbalance with New Delhi, Trump justified the imposition of the 25 per cent tariff.
Describing Prime Minister Narendra Modi as his friend, Trump remarked that India does not engage in substantial trade with the United States. He also noted that India is part of the BRICS alliance, which he characterised as “a group of countries that are against the United States.”
When questioned about the possibility of talks with India on the tariffs, Trump said, “We are currently in discussions with them. Let’s see what unfolds. India had been among the highest, if not the highest, tariff-imposing nations in the world… We shall see. We are negotiating with India at present. They export a great deal to us, but we don’t import much from them… because their tariffs are so steep. They are among the countries with the highest tariffs globally. Now, they are showing readiness to reduce them significantly. But let’s see how it goes. Talks are ongoing. We shall see. Whether or not a deal happens, it doesn’t make much difference — either way, we impose tariffs. You will have clarity by the end of this week…”
“We are in the middle of negotiations, and don’t forget — there’s BRICS. You know, they have BRICS, which is largely a bloc of nations that are anti-American, and India is one of them… It’s an assault on the US dollar, and we are not going to allow anyone to undermine the dollar,” Trump stated at the White House.
Trump has previously accused BRICS — comprising Brazil, Russia, India, China, and South Africa — of attempting to challenge the dominance of the US dollar, and has threatened to impose 10 per cent tariffs on member nations if they pursued such actions.
Trump Declares 25% Tariff on Indian Products
On Wednesday, Trump declared that a 25 per cent tariff would be levied on all imports from India starting August 1, in addition to an unspecified penalty for its continued purchase of Russian crude oil and defence equipment.
The sudden move came just a day after Indian officials announced that a US trade delegation would be visiting from August 25 to hold talks on a trade agreement.
“India is our friend, but we’ve had limited trade with them because of their exceedingly high tariffs… and they impose the most burdensome and unreasonable non-tariff trade barriers of any country,” Trump posted.
He also criticised India’s defence and energy ties with Russia, saying, “They have always sourced the majority of their military gear from Russia and are among the top buyers of Russian ENERGY, alongside China — at a time when the world is urging Russia to END THE WAR IN UKRAINE — all of this is NOT GOOD!”
India Reviewing Impact of Trump’s Tariff Order
On Wednesday, the Indian government said it is carefully assessing the impact of President Donald Trump’s directive to implement 25 per cent duties on Indian goods, along with a penalty beginning August 1.
“The Government has taken note of the statement made by the US President regarding bilateral trade. The matter is under examination,” said an official release.
India and the United States have been engaged in dialogue over the past few months, aiming to finalise a balanced and mutually advantageous trade deal.
“We remain committed to achieving this goal,” the statement added.
“The Government places the highest priority on safeguarding and promoting the interests of farmers, small businesses, and MSMEs. All necessary measures will be undertaken to uphold national interest, as has been done in previous trade pacts — including the recent Comprehensive Economic and Trade Agreement with the UK,” it further said.
