US President Donald Trump, addressing reporters aboard Air Force One just days before a self-imposed August 1 deadline for new trade measures, asserted that negotiations on a US-India trade deal were “working out very well.”

Despite this optimistic outlook, Trump suggested that tariffs in the range of 20% to 25% could soon be imposed on Indian goods, citing India’s historically high tariffs on US imports compared to other countries. Trump emphasised that such trade imbalances would no longer be tolerated, reiterating his commitment to securing agreements that benefit the United States.

Although Trump has not officially notified India of any new tariff imposition—a step he has taken with other nations—his remarks signal ongoing pressure as part of broader efforts to recalibrate the US trade relationship with India. Previously, on April 22, Trump announced a 26% tariff on certain Indian goods, but subsequently paused these "reciprocal" levies, signalling openness to dialogue as negotiations advanced.

From India’s perspective, senior officials described recent trade discussions as positive and constructive. Commerce Minister Piyush Goyal highlighted India’s confident negotiating stance, stating that talks with the US are moving forward from a strong position, which bodes well for reaching “good free trade agreement”

Similarly, Foreign Secretary Vikram Misri, following the India-UK Free Trade Agreement, confirmed that a potential Bilateral Trade Agreement (BTA) with the US remains under active negotiation, with both sides aiming for a mutually beneficial outcome.

These economic talks unfolded against the backdrop of recent South Asian security developments. Trump claimed credit for brokering a ceasefire between India and Pakistan after the April 22 Pahalgam terror attacks and subsequent Indian military response—‘Operation Sindoor’—against terror camps in Pakistan and Pakistan-occupied Jammu and Kashmir.

He reiterated his praise for Indian Prime Minister Narendra Modi's role in stabilising the region. However, Indian officials have noted that the ceasefire initiative was prompted by Pakistan’s Directorate General of Military Operations reaching out to their Indian counterpart requesting an end to hostilities.

As the deadline for potential US tariffs approaches, both nations appear committed to deepening trade cooperation, even as sensitive issues and high-stakes negotiations continue to shape the evolving relationship.

Based On ANI Report