New Delhi (TDI): India is bracing for higher US tariffs, possibly up to 25 percent, on some of its exports, as trade negotiations with the United States face delays.
According to senior officials in New Delhi, both sides are actively working behind closed doors, with India aiming to finalize a broad bilateral trade agreement by September or October, Reuters reported.
A high-level US delegation is expected to visit India in mid-August, which could help accelerate the negotiation process.
“Discussions have moved forward positively,” said an Indian government official. “In a worst-case scenario, President Trump may issue a directive imposing duties of 20% or 25% on certain Indian goods. But we expect that to be a short-term measure, given the progress made over five previous rounds of talks.”
Read More: Five Jets Shot Down in Pakistan-India Hostilities: Trump
President Trump on Monday warned that countries not engaging in bilateral trade agreements with the US could soon face tariffs ranging between 15% and 20%, significantly above the 10% global tariff he introduced in April.
His administration is reportedly preparing to notify nearly 200 nations of new trade rules under the so-called “world tariff” plan.
Speaking to CNBC, US Trade Representative Jamieson Greer noted that while India has shown willingness to open parts of its market, further discussions are needed. “President Trump prefers meaningful, balanced deals over quick compromises,” Greer said.
Read More: US Rebukes India Over Trump’s Ceasefire Role Denial
India’s Trade Minister Piyush Goyal recently described the progress in talks as “fantastic” and pointed to India’s readiness to cut tariffs on various products and reduce non-tariff barriers. However, he made it clear that the agriculture and dairy sectors remain sensitive areas, with New Delhi resisting pressure to allow imports of genetically modified crops and foreign dairy products.
In 2024, trade in goods between the two nations totaled approximately $129 billion, with India recording a surplus of nearly $46 billion. While India has floated several concessions during the talks, officials say New Delhi is currently holding off on new offers to reassess its strategy amid broader US tariff threats aimed at BRICS nations, including India, over geopolitical issues such as de-dollarization and energy ties with Russia.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
