US President Donald Trump said India could face tariffs between 20% and 25%. But he also said no final decision has been made. Both countries are still discussing a trade deal before the August 1 deadline.

When asked if that tariff rate was possible, Trump told reporters, “I think so,” according to Bloomberg.

Trump spoke while returning to Washington from Scotland. He said, “India has been a good friend, but India has charged basically more tariffs than almost any other country.” He added, “You just can’t do that.”

US Wants India to Open Its Market

US Trade Representative Jamieson Greer told CNBC the deal still needs more work. CNN quoted him saying, “They have expressed strong interest in opening portions of their market, we of course are willing to continue talking to them.” He added, “But I think we need some more negotiations on that with our Indian friends to see how ambitious they want to be.”

Trump wants all US trading partners to give American products better access. He is applying the same pressure on India.

India Still Hopeful, But Details Remain Unclear

Neither country has revealed specific issues. But Indian Commerce Minister Piyush Goyal said last week he was hopeful about reaching a deal before August 1.

So far, India hasn’t received a formal tariff warning letter. Trump has sent such letters to over a dozen countries. Still, on April 2, he imposed a 26% tariff on Indian goods, then paused it during talks.

Trump Repeats Criticism of Indian Tariffs

Trump has often criticized India’s trade policies. On February 13, just before meeting Prime Minister Narendra Modi, he said, “They charge more tariffs than any other country.”

He also said the US-India trade relationship is “very tough.” He pointed to the rising trade gap between the two nations, which has nearly doubled in the past decade.

US Targets More Than Just Tariffs

CNN reported that Trump officials also dislike India’s non-tariff barriers. These include digital service taxes, complex import rules, and testing requirements.

In 2024, the US bought $87 billion worth of goods from India. India bought $42 billion in American goods, according to the US Commerce Department. India mainly exports drugs, smartphones, and clothes to the US.

Trump Holds Final Say

With August 1 approaching, talks are still active. But President Trump will make the final decision on tariffs and trade terms.