Days before a self-imposed deadline on potential trade tariffs, former US President Donald Trump repeated his dissatisfaction with India’s trade policies, while still calling the current negotiations promising for the United States.
“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. I think the trade deals are working out very well. Hopefully for everybody, but for the United States, they're very, very good,” Trump said while speaking to reporters aboard Air Force One.
The remarks followed reports that India was preparing retaliatory tariffs of 20 to 25 per cent. In response, Trump suggested he might mirror those figures, again accusing India of long-standing protectionist measures.
Although no official communication has been sent to India regarding these possible tariffs, Trump’s words come at a tense moment. On 22 April, he had already imposed a 26 per cent tariff on Indian goods before halting it temporarily, calling the levies “reciprocal”.
Indian officials signal confidence in trade talks
On the Indian side, officials are painting a more measured picture. Union Commerce Minister Piyush Goyal, speaking on Sunday, said talks with the US were on track and productive.
“India today negotiates from a position of strength, a position of confidence. It is this very confidence that continuously encourages us to make good free trade agreements... Our discussions with the United States are progressing very well,” he said.
Foreign Secretary Vikram Misri also commented during Prime Minister Modi’s recent UK visit. Referring to an ongoing line of discussion on a possible Bilateral Trade Agreement (BTA) with the US, Misri said, “We are discussing that under a different vertical. All I can say is that our engagement is underway. The contacts are underway, and we'll see how that goes.”
Progress towards Bilateral Trade Agreement underway
A senior government official, speaking on 14 July, provided further clarity. India and the US are reportedly making concrete progress on the BTA front. According to the official, both governments are following a path laid out by their respective leaders.
The official noted India is “moving in terms of a BTA” and “looking at a mutually beneficial deal” that would work for both sides.
While there’s no final timeline, the current approach appears rooted in sustained dialogue rather than sudden moves.
Trump again claims credit for India–Pakistan ceasefire
Trump also used the same press event to revisit a separate claim from earlier this year — that he played a direct role in brokering peace between India and Pakistan following cross-border tensions in May.
“Look, India, they're my friends and he's (PM Modi) my friend and you know they ended the war with Pakistan and by request and I was great and Pakistan did also. We did a lot of great settlements,” he said.
The conflict he referred to followed the 22 April terror attacks in Pahalgam, which killed 26 people. India responded with ‘Operation Sindoor’, targeting nine terror camps across Pakistan-occupied Kashmir.
While Trump praised India’s leadership for maintaining stability in the region, his version of events has been challenged in New Delhi. According to Indian officials, it was actually Pakistan’s Director General of Military Operations who initiated the ceasefire by reaching out to his Indian counterpart.
Despite strong statements from Trump, India has not received any official notification about new tariffs. Meanwhile, back-channel talks and diplomatic meetings continue.
Both sides appear focused on avoiding escalation. For India, the aim remains a balanced deal that upholds national interests without sacrificing long-term ties with Washington.
For now, all eyes remain on 1 August. Whether Trump follows through on his tariff warning or steps back once again, the coming days could set the tone for the next phase of India–US trade relations.
“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. I think the trade deals are working out very well. Hopefully for everybody, but for the United States, they're very, very good,” Trump said while speaking to reporters aboard Air Force One.
The remarks followed reports that India was preparing retaliatory tariffs of 20 to 25 per cent. In response, Trump suggested he might mirror those figures, again accusing India of long-standing protectionist measures.
Although no official communication has been sent to India regarding these possible tariffs, Trump’s words come at a tense moment. On 22 April, he had already imposed a 26 per cent tariff on Indian goods before halting it temporarily, calling the levies “reciprocal”.
Indian officials signal confidence in trade talks
On the Indian side, officials are painting a more measured picture. Union Commerce Minister Piyush Goyal, speaking on Sunday, said talks with the US were on track and productive.
“India today negotiates from a position of strength, a position of confidence. It is this very confidence that continuously encourages us to make good free trade agreements... Our discussions with the United States are progressing very well,” he said.
Foreign Secretary Vikram Misri also commented during Prime Minister Modi’s recent UK visit. Referring to an ongoing line of discussion on a possible Bilateral Trade Agreement (BTA) with the US, Misri said, “We are discussing that under a different vertical. All I can say is that our engagement is underway. The contacts are underway, and we'll see how that goes.”
Progress towards Bilateral Trade Agreement underway
A senior government official, speaking on 14 July, provided further clarity. India and the US are reportedly making concrete progress on the BTA front. According to the official, both governments are following a path laid out by their respective leaders.
The official noted India is “moving in terms of a BTA” and “looking at a mutually beneficial deal” that would work for both sides.
While there’s no final timeline, the current approach appears rooted in sustained dialogue rather than sudden moves.
Trump again claims credit for India–Pakistan ceasefire
Trump also used the same press event to revisit a separate claim from earlier this year — that he played a direct role in brokering peace between India and Pakistan following cross-border tensions in May.
“Look, India, they're my friends and he's (PM Modi) my friend and you know they ended the war with Pakistan and by request and I was great and Pakistan did also. We did a lot of great settlements,” he said.
The conflict he referred to followed the 22 April terror attacks in Pahalgam, which killed 26 people. India responded with ‘Operation Sindoor’, targeting nine terror camps across Pakistan-occupied Kashmir.
While Trump praised India’s leadership for maintaining stability in the region, his version of events has been challenged in New Delhi. According to Indian officials, it was actually Pakistan’s Director General of Military Operations who initiated the ceasefire by reaching out to his Indian counterpart.
Despite strong statements from Trump, India has not received any official notification about new tariffs. Meanwhile, back-channel talks and diplomatic meetings continue.
Both sides appear focused on avoiding escalation. For India, the aim remains a balanced deal that upholds national interests without sacrificing long-term ties with Washington.
For now, all eyes remain on 1 August. Whether Trump follows through on his tariff warning or steps back once again, the coming days could set the tone for the next phase of India–US trade relations.
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