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Times of Oman
5 hours ago
- Business
- Times of Oman
Deals working out very well: Trump on India-US trade deal, hints at 20-25 per cent tariff
Washington: Just days ahead of the self-imposed August 1 deadline date before the tariffs come into effect, US President Donald Trump stated that the India-US trade deal was "working out very well" but hinted at a 20 per cent to 25 per cent tariff on New Delhi. During a gaggle with the press interaction aboard Air Force One on Tuesday (local time), Trump responded to a report suggesting that India might be preparing for 20 to 25 per cent tariffs, stating that India had been imposing higher tariffs on the US as compared to other countries. He further mentioned that all this would come to an end as he is now "in charge." However, Trump hasn't sent any letters to India announcing the tariff imposed on New Delhi, as he did for many other nations. "India has been a good friend. But India has charged basically more tariffs than almost any other country over the years. But now I'm in charge. And you just can't do that. I think the trade deals are working out very well. Hopefully for everybody, but for the United States, they're very, very good," the US President said. Earlier on April 22, Trump imposed a tariff of 26 per cent on Indian goods imported to the US, before announcing a pause on those "reciprocal" levies. Meanwhile, the Union Minister for Commerce, Piyush Goyal, on Sunday, stated that the trade discussion between India and the US had been going "very well." "India today negotiates from a position of strength, a position of confidence. It is this very confidence that continuously encourages us to make good free trade agreements... Our discussions with the United States are progressing very well," he stated. Foreign Secretary Vikram Misri, during PM Modi's visit to the UK last week, also stated that India had been actively engaged in discussions with the US on a potential Bilateral Trade Agreement (BTA), emphasising the ongoing contacts with partners in the US. During a press conference following the signing of the India-UK Free Trade Agreement, Misri stated, "We are discussing that under a different vertical. All I can say is that our engagement is underway. The contacts are underway, and we'll see how that goes." On July 14, a senior government official stated that India was making concrete progress toward finalising a BTA with the US, with both countries committed to following the path outlined by their respective leaders. Speaking on the ongoing trade negotiations, the official emphasised that India is "moving in terms of a BTA" and actively "looking at a mutually beneficial deal" that would serve the interests of both nations. Trump also used the opportunity to once again claim credit for his role in brokering the ceasefire agreement between India and Pakistan, following the recent conflict in May. The conflict was triggered by the April 22 Pahalgam terror attacks, which killed 26 people, and India's subsequent response, 'Operation Sindoor,' involving precision strikes on nine terror camps in Pakistan and Pakistan-occupied Jammu and Kashmir (PoJK). He also praised India's leadership under Prime Minister Narendra Modi for its role in regional stability. "Look, India, they're my friends and he's (PM Modi) my friend and you know they ended the war with Pakistan and by request and I was great and Pakistan did also. We did a lot of great settlements," he said. India had reportedly refuted the claims made by the US president, noting that it was Pakistan's Director General of Military Operations (DGMO) who contacted their Indian counterpart to request an end to hostilities, following which the ceasefire was then agreed upon.
India.com
10 hours ago
- Business
- India.com
‘Deals Working Out Very Well': Trump Talks Sweet About ‘Good Friend' India, Hints At Bitter 25% Tariff
Washington: Inside the humming cabin of Air Force One, President Donald Trump leaned back and spoke to reporters as casually as one might comment on the weather. But his words carried weight, especially for India. With just a couple of days left before an August 1 deadline, he said things between Washington and New Delhi were 'working out very well'. But at the same time warned tariffs as high as 20% to 25% might be on the way. He did not make the comment out of nowhere. A reporter had asked about whispers from New Delhi that India might be bracing for steep new duties. Trump shrugged off the speculation but made his stance clear. 'India has charged basically more tariffs than almost any other country over the years. But now I am in charge. And you just cannot do that,' he said. Though there has been no formal communication to India so far and no signed letter like those sent to other nations, the possibility of new tariffs is very much on the table. Despite the tense undertone, Trump called India 'a good friend'. Back in April, the Trump administration had already slapped a 26% tariff on Indian imports, only to hit the brakes later, describing them as 'reciprocal' measures that could be revisited. On the Indian side, the mood has been more optimistic. Speaking this past Sunday, Commerce Minister Piyush Goyal said India is negotiating from a position of strength. 'India today negotiates from a position of strength, a position of confidence. It is this very confidence that continuously encourages us to make good free trade agreements. Our discussions with the United States are progressing very well,' he said. Foreign Secretary Vikram Misri echoed similar confidence during Prime Minister Narendra Modi's recent trip to the United Kingdom. He told the media that India is in regular touch with U.S. officials on the possibility of a Bilateral Trade Agreement (BTA), though those talks are being handled under a separate track. 'We are discussing that under a different vertical. All I can say is that our engagement is underway. The contacts are underway, and we will see how that goes,' Misri said after the India-UK Free Trade Agreement signing ceremony. Back on July 14, a senior Indian official said the government was moving ahead with 'concrete progress' on the BTA with Washington, describing the deal as something both nations are committed to finalising under the leadership of Modi and Trump. India's goal? A win-win deal. 'We are moving in terms of a BTA. We are looking at a mutually beneficial deal,' the official said. But trade was not the only card Trump played in the air that day. He also took a moment to reflect on what he called his role in halting the conflict between India and Pakistan earlier this year. The standoff began after the April 22 terror attacks in Pahalgam, which claimed 26 lives. India's response, now widely discussed Operation Sindoor, involved targeted precision strikes on nine terror camps in Pakistan and Pakistan-occupied Jammu and Kashmir. Trump claimed he had helped broker the peace. 'Look, India, they are my friends and he is (PM Modi) my friend. And you know they ended the war with Pakistan and by request and I was great and Pakistan did also. We did a lot of great settlements,' he said. India, however, had offered a different version of events. According to New Delhi, it was Pakistan's Director General of Military Operations who made the first move and reached out to his Indian counterpart to ask for a ceasefire. Only then did hostilities ease. Whether Trump's version holds up or not, trade and geopolitics are once again tied together, with India and the United States carefully maneuvering, with each step being closely watched. (With ANI inputs)
The Hindu
11 hours ago
- Business
- The Hindu
Trump remarks on India-U.S. trade deal and hints at 20-25% tariff, again claims credit for ceasefire between India and Pak.
Just days ahead of the self-imposed August 1 deadline date before the tariffs come into effect, U.S. President Donald Trump stated that the India-US trade deal was 'working out very well' but hinted at a 20% to 25% tariff on New Delhi. During a gaggle with the press interaction aboard Air Force One on Tuesday (local time), Mr. Trump responded to a report suggesting that India might be preparing for 20 to 25% tariffs, stating that India had been imposing higher tariffs on the U.S. as compared to other countries. He further mentioned that all this would come to an end as he is now 'in charge.' However, Trump hasn't sent any letters to India announcing the tariff imposed on New Delhi, as he did for many other nations. 'India has been a good friend. But India has charged basically more tariffs than almost any other country over the years. But now I'm in charge. And you just can't do that. I think the trade deals are working out very well. Hopefully for everybody, but for the United States, they're very, very good,' the US President said. Earlier on April 22, Trump imposed a tariff of 26% on Indian goods imported to the US, before announcing a pause on those 'reciprocal' levies. Meanwhile, the Union Minister for Commerce, Piyush Goyal, on Sunday, stated that the trade discussion between India and the U.S. had been going 'very well.' 'India today negotiates from a position of strength, a position of confidence. It is this very confidence that continuously encourages us to make good free trade agreements... Our discussions with the United States are progressing very well,' he stated. Foreign Secretary Vikram Misri, during PM Modi's visit to the U.K. last week, also stated that India had been actively engaged in discussions with the US on a potential Bilateral Trade Agreement (BTA), emphasising the ongoing contacts with partners in the US. During a press conference following the signing of the India-UK Free Trade Agreement, Misri stated, 'We are discussing that under a different vertical. All I can say is that our engagement is underway. The contacts are underway, and we'll see how that goes.' On July 14, a senior government official stated that India was making concrete progress toward finalising a BTA with the US, with both countries committed to following the path outlined by their respective leaders. Speaking on the ongoing trade negotiations, the official emphasised that India is 'moving in terms of a BTA' and actively 'looking at a mutually beneficial deal' that would serve the interests of both nations. Trump repeats claim of brokering ceasefire Mr. Trump also used the opportunity to once again claim credit for his role in brokering the ceasefire agreement between India and Pakistan, following the recent conflict in May. The conflict was triggered by the April 22 Pahalgam terror attacks, which killed 26 people, and India's subsequent response, 'Operation Sindoor,' involving precision strikes on nine terror camps in Pakistan and Pakistan-occupied Jammu and Kashmir (PoJK). He also praised India's leadership under Prime Minister Narendra Modi for its role in regional stability. 'Look, India, they're my friends and he's [PM Modi] my friend and you know they ended the war with Pakistan and by request and I was great and Pakistan did also. We did a lot of great settlements,' he said. India had repeatedly refuted the claims made by the U.S. President, noting that it was Pakistan's Director General of Military Operations (DGMO) who contacted their Indian counterpart to request an end to hostilities, following which the ceasefire was then agreed upon.
New Indian Express
15 hours ago
- Business
- New Indian Express
Trump hints at 20–25 per cent tariff on Indian imports with deadline looming
With the August 1 deadline around the corner and no interim deal in sight, President Donald Trump has hinted that the US may impose a 20–25% tariff on imports from India. Speaking to reporters, Trump said the final tariff rate is yet to be decided as the two countries continue negotiations on a trade deal ahead of the deadline. 'India has been a good friend, but India has charged basically more tariffs than almost any other country,' Trump said aboard Air Force One as he returned to Washington from a five-day visit to Scotland. 'You just can't do that.' Indian government sources had earlier said that New Delhi is not in a hurry to finalise the deal. 'We are in negotiations with the US government for the Bilateral Trade Agreement (BTA), but if an interim agreement is reached, it is well and good,' a senior government official told The New Indian Express. US Trade Representative Jamieson Greer said on Monday that the US needed more time to assess India's willingness to further open its markets to American exports. A US trade delegation is scheduled to visit India on August 25 for further talks on the BTA, the first tranche of which both sides had agreed to conclude by September–October this year. In April, Trump had announced a 26% reciprocal tariff on Indian goods exported to the US, but put it on hold pending trade negotiations. Currently, Indian goods entering the US attract a 10% levy, except for a few sectors where rates differ. Steel and aluminium, for instance, face a 50% tariff. Tariffs on agricultural products—particularly genetically modified (GM) crops—and dairy items remain key points of contention between the two countries. A senior government official had earlier told TNIE that India is firm on its position against importing GM crops from the US. It is to be noted that in the India–UK trade deal, several sensitive items such as dairy and farm products were excluded from the scope of the agreement.
Mint
a day ago
- Business
- Mint
Why is the India-US trade deal delayed? What does it mean for the Indian stock market? Explained
A trade deal between India and the US remains elusive, despite repeated claims from both sides in recent months that an agreement was within reach. The US, over the last few days, has signed trade deals with several major economies, including Japan and the European Union (EU). With China, the US had a tariff and export control agreement in May with August 12 deadline, which, according to experts, may be extended. According to Reuters, US and Chinese economic officials resumed talks in Stockholm, Sweden, on Monday. On the other hand, there has been no major breakthrough on the trade deal front between the US and India — at least none that has been made public. Last Thursday, July 24, the Ministry of External Affairs (MEA) said India and the US are working towards finalising the 'first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA).' Hopes were high that a trade deal between India and the US could be finalised before July 9, an earlier deadline set by US President Donald Trump for the tariffs to take effect. However, despite several rounds of talks and reports suggesting that President Trump was expected to make a final decision on the potential deal, no agreement materialised. A key point of contention has been the US's insistence on greater access to Indian markets for its agricultural, dairy, and genetically modified (GM) products. However, India has argued that such access could negatively impact the livelihoods of its farmers. "The US wants more access to India's agriculture market, particularly dairy products. India cannot and is unwilling to negotiate on this. Animal farming in India is a source of livelihood for millions, not a large-scale industry like in the Western world," VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted. Moreover, reports suggest that India is seeking lower tariff rates to gain a competitive edge over its Asian peers. Another possible reason for the delay in finalising the trade deal is the US's stance against countries importing oil from Russia. Last week, US Senator Lindsey Graham issued a stark warning that President Trump intends to impose steep tariffs on countries continuing to import oil from Russia. Experts still remain optimistic that India and the US will reach an agreement, even though it may take time and may even go beyond the August 1 deadline. After August 1, tariffs on Indian imports to the US will increase to 26 per cent. Both countries may first finalise a basic trade deal, while talks for a more comprehensive agreement could continue until October or November. According to media reports, a team of US negotiators is expected to visit New Delhi in the second half of August for the next round of discussions. Experts believe that a deal is important not only for India but also for the US because of geopolitical compulsions. "We believe that signing a trade deal amicably with India is equally important for the US for geopolitical compulsions. Therefore, we still hope that India would avoid any major risk on this front," G Chokkalingam, the founder and head of research at Equinomics Research Private Limited, observed. A further delay may keep the market under pressure due to elevated concerns about the country's widening trade deficit, potentially triggering ripple effects on the economy and the Indian rupee. On the other hand, a trade deal could serve as a short-term catalyst for the domestic market and may help it break out of the range it has been trading in for nearly two months. "If India signs a deal with the US and averts the 26 per cent reciprocal duties, then the market is likely to recover significantly. In case reciprocal duty is imposed, then the market is likely to remain weak in the short-term," said Chokkalingam. A trade deal between the two countries may also attract FPIs who have been on a selling spree of Indian equities this month. "Over the medium term, this could encourage increased FPI inflows into sectors like manufacturing, technology, and healthcare, particularly if supported by supply chain diversification and the ongoing 'China+1' strategy. Such a deal would also signal long-term economic stability and global integration, key factors for long-duration foreign investors," Aditya Sood, a fund manager at InCred Asset Management, told Mint. However, in the long term, the market will look for durable economic growth and a sustainable recovery in earnings to justify the elevated valuations. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
