Tariff decision pending amid ongoing India-US trade discussions
President Donald Trump indicated on Tuesday that India could face tariffs between 20% and 25% on certain exports to the United States, slightly below the 26% reciprocal tariff announced earlier in April. However, he clarified that the final rate had not yet been confirmed, as both countries continue negotiating the terms of a bilateral trade agreement ahead of an August 1 deadline.
When asked by reporters whether the 20-25% rate was likely, Trump responded, “I think so.” Speaking aboard Air Force One on his return from a trip to Scotland, he said, “India has been a good friend, but India has charged basically more tariffs than almost any other country. You just can’t do that.”
Competitive impact in global textile market
Should the US impose the proposed tariff range, Indian exports, particularly textiles, may gain a slight advantage over countries like Bangladesh. The tariff would include a baseline 10% duty, bringing the total rate to a competitive level against some key trade rivals. For context, Vietnam currently faces a 20% tariff, Indonesia 19%, the European Union and Japan 15%, and the UK 10%. Meanwhile, Chinese imports into the US are subject to a 30% customs duty.
This tariff consideration comes at a time when India is seeking to expand its footprint in the global textile market, where pricing margins are tight and trade terms often determine competitiveness.
Limited progress on bilateral trade deal
Despite finalizing trade agreements recently with partners such as Japan, Indonesia, and the European Union, the US has struggled to find common ground with India. A key point of contention remains India’s refusal to reduce tariffs on agricultural and dairy products. New Delhi has also maintained a strict policy against allowing genetically modified agricultural imports.
Talks between the two nations have been ongoing for months, with both sides aiming to announce a phased trade agreement. However, significant differences in market access and regulatory issues remain unresolved.
US delegation to visit India for further talks
As part of continued efforts to bridge these gaps, a US delegation is scheduled to visit New Delhi beginning August 25. The visit aims to explore the possibility of finalizing the first tranche of a trade deal by early Fall (September–October).
Jamieson Greer, a trade representative from the US, stated on Monday that more time was needed to evaluate India’s willingness to open its market to American products. “We’re still assessing how far India is prepared to go in terms of improving access for US exporters,” Greer noted.
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Iran has been under sanctions since 1979. So let us not worry about about the tariffs and not even react.India is as independent as the US and both of us have the same rights in their perceived national interest. In as much as we need to by US arms the US also needs to sell them, let us not forget there are not many in the world capable of buying them against payment. The advantages of buying the Russian crude will may or may not offset by the new tariffs but with a 680 usd forex reserves we should be well placed to absorb any negative out come.
Stump will be known to be on wrong side of the world history.
Loud mouth & too many positioning. Making predictions. USA will come running & fall on India’s foot. Remember this. Rest future will unfold over the decades.