US President Donald Trump revealed that trade negotiations with India were ongoing, despite his earlier threats to impose a 25% tariff on Indian imports and penalize nations purchasing Russian energy. Speaking on Wednesday, Trump said, “We’re talking to India now. We’ll see what happens,” suggesting that a final decision could be reached by the end of the week.
He noted that India — which he claimed imposes some of the highest tariffs globally — is now willing to reduce them “very substantially.” While he sidestepped questions about penalties for buying Russian oil, he did mention a 10% charge he had floated for BRICS nations.
Many experts see Trump’s aggressive stance as a strategic move in the ongoing talks, especially since no official tariff order has been issued against India. New Delhi responded firmly, stressing that the government would act to “secure our national interest.” India indicated that agriculture remains a sticking point, with a statement underscoring the priority to protect farmers, small businesses, and entrepreneurs. The US has long pushed for broader access to India’s agricultural and dairy markets, a sensitive area for Indian negotiators.
Trump’s administration had previously sounded hopeful, with officials like Commerce Secretary Howard Lutnick suggesting India would be one of the first to finalize a deal. However, despite repeated assurances, no agreement has been reached. Last week, Indian Commerce Minister Piyush Goyal called the discussions “fantastic” and said a meaningful outcome seemed likely.
India’s Commerce Ministry reaffirmed its commitment to a “fair, balanced, and mutually beneficial” agreement. At a press briefing, Trump casually referred to Indian Prime Minister Narendra Modi as “a friend,” but reiterated that India’s tariffs make US exports difficult, accusing New Delhi of levies as high as 175%.
When asked again about Russia-related penalties, Trump deflected, turning attention to BRICS — a bloc he deemed hostile to the US. “India is a member of that, if you can believe it,” he said, adding that BRICS was attacking the US dollar — something his administration wouldn’t tolerate.
On Truth Social, Trump further criticized India’s close energy and defense ties with Russia, declaring that starting August 1, India would face a 25% tariff and additional penalties.
