U.S. President Donald Trump indicated that India could face tariffs of 20–25% on its exports to the U.S. if a bilateral trade agreement is not finalized by the August 1 reciprocal tariff deadline. He criticized India’s trade policies, stating, “India has been a good friend, but India has charged basically more tariffs than almost any other country” . However, he clarified that no final decision has been made and that the higher tariffs remain contingent on ongoing negotiations .

Trump also reiterated his controversial claim of helping broker a ceasefire between India and Pakistan after the Pahalgam conflict, stating “they ended the war with Pakistan at my request” . India has publicly refuted this, with Prime Minister Modi clarifying that no foreign leader influenced the military decisions in Parliament earlier this week .

Notably, Trump has not yet issued any formal tariff notification letters to India, unlike letters sent to many other countries warning of impending duties. Meanwhile, experts caution that without progress in talks, tariffs could be imposed sharply, affecting India’s export sectors.