šØ India Faces Trumpās 20ā25% Tariff Threat if No US Deal by Aug 1! šŗšøš®š³
- MediaFx

- Jul 30, 2025
- 2 min read
TL;DR:Ā IndiaāUS trade talks are reaching a critical point ahead of the AugustĀ 1,Ā 2025Ā deadline šļøāPresident Donald Trump has warned that 20ā25% tariffsĀ may be slapped on Indian imports if no deal is sealed. India claims #fantastic progress in negotiations and is aiming for a broader bilateral deal by September or October, while markets brace for rupee weakness.š§µ

š Whatās Going On?
Trump warnedĀ that India could face 20ā25% reciprocal tariffsĀ if the trade agreement isn't finalised by AugustĀ 1.
He emphasised that āIndia is my friend⦠but India has charged basically more tariffs than almost any other countryā.
Though he sees India as an ally, he criticised its protectionist tariff regime and said it canāt continue like this anymore.
š®š³ Indiaās Side of the Story
Commerce Minister Piyush GoyalĀ called the negotiations āfantasticā and optimistic about reaching an agreementāeven if partial or sectoral.
Despite five previous rounds of talks, no full breakthrough yet; India is cautious about opening its agricultural and dairy sectors, calling them non-negotiables.
New Delhi is holding off on fresh concessions before the AugustĀ 1Ā deadline, aiming for final deal talks midāAugustĀ when a U.S. delegation visits.
š Market Pressure & Currency Impact
The Indian rupee slumpedĀ nearly 0.5%, touching its lowest in four months (below ā¹87/USD), as traders reacted to tariff threat news.
Outflows from foreign portfolio investors added fuelāover USDāÆ1.5āÆbillion in equities sold in July alone.
The Reserve Bank of India (RBI)Ā likely intervened to steady the rupee, though firm support above ā¹86.62 seems critical.
š Stakes & Stats at a Glance
Item | Details |
Trade volume | USāIndia goods trade: ~USDāÆ129āÆbillionĀ in 2024 |
India surplus | India posted ~USDāÆ46āÆbillionĀ surplus in bilateral goods trade in 2024 |
Potential tariff impact | Experts warn a 20ā25% duty could hit 87% of Indiaās exports to the US, especially pharma & auto parts |
ā MediaFx Take: From the Peopleās Perspective
From the grassroots view, India's delaying tactic is savvyānot rushingĀ into unfair trade concessions and protecting small farmers and local industriesĀ from agricultural liberalisation pressures. š¬ The August 1 window is a client check; even if talks go longer, India holds the line. š·āāļø Only a real dealāensuring fair access and protecting domestic livelihoodsāis acceptable. Pressure tactics may harm ordinary workers and exporters more than elites.
š£ļø Engage with Us!
What do youĀ think, #India? Should we accept interim tariffs to get a deal quickly, or hold firm for a fairer agreement? Drop your thoughts in the comments! š¬š













































