Trump Warns India of Potential 25% Tariffs Without Agreement

Back in April, Trump had announced tariffs of up to 27% on Indian goods, which was later paused.

Since then, both sides have been racing to negotiate an agreement, with officials sometimes sounding positive and at other times, measured.

\"We continue to speak with our Indian counterparts. We've always had very constructive discussions with them,\" US Trade Representative Jamieson Greer said earlier this week.

He also acknowledged that although he had earlier said a deal with India might be \"imminent\", it needed to be understood that Delhi's trade policy has been \"protectionist for a very long time, external\" and has been \"premised on strongly protecting their domestic market\".

Greer added that Trump has been focused on securing deals that substantially open other markets to the US.

Agriculture and dairy are among the key sticking points for both countries.

For years, Washington has pushed for greater access to India's farm sector, seeing it as a major untapped market. But India has fiercely protected it, citing food security, livelihoods and the interests of millions of small farmers.

Last week, Indian Commerce Minister Piyush Goyal told CNBC that the agriculture sector is sensitive for India, external and that it will make sure that farmers' interests are \"well protected\".

Goyal also told news agencies that India remains \"optimistic\" about striking a deal with Washington soon.

Speaking to Reuters, he said that India was making \"fantastic progress\" in talks with the US and that he hoped they were able to \"conclude a very consequential partnership\".

Until recently, the US was India's largest trading partner, with bilateral trade reaching $190bn in 2024. Trump and Modi have set a target to more than double this figure to $500bn.

India has already reduced tariffs on a range of goods - including Bourbon whiskey and motorcycles - but the US continues to run a $45bn (£33bn) trade deficit with India, which Trump is keen to reduce.

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According to the source: BBC.