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🚨 India Faces Trump’s 20–25% Tariff Threat if No US Deal by Aug 1! šŸ‡ŗšŸ‡øšŸ‡®šŸ‡³

TL;DR:Ā India–US trade talks are reaching a critical point ahead of the AugustĀ 1,Ā 2025Ā deadline šŸ—“ļøā€”President Donald Trump has warned that 20–25% 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.🧵

šŸ” What’s Going On?

  • Trump warnedĀ that India could face 20–25% reciprocal tariffsĀ if the trade agreement isn't finalised by AugustĀ 1.

  • He emphasised that ā€œIndia 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 can’t continue like this anymore.

šŸ‡®šŸ‡³ India’s Side of the Story

  • Commerce Minister Piyush GoyalĀ called the negotiations ā€œfantasticā€ and optimistic about reaching an agreement—even 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 mid‑AugustĀ when a U.S. delegation visits.

šŸ“‰ Market Pressure & Currency Impact

  • The Indian rupee slumpedĀ nearly 0.5%, touching its lowest in four months (below ₹87/USD), as traders reacted to tariff threat news.

  • Outflows from foreign portfolio investors added fuel—over USD 1.5 billion in equities sold in July alone.

  • The Reserve Bank of India (RBI)Ā likely intervened to steady the rupee, though firm support above ₹86.62 seems critical.

šŸ“Š Stakes & Stats at a Glance

Item

Details

Trade volume

US–India goods trade: ~USD 129 billionĀ in 2024

India surplus

India posted ~USD 46 billionĀ surplus in bilateral goods trade in 2024

Potential tariff impact

Experts warn a 20–25% duty could hit 87% of India’s exports to the US, especially pharma & auto parts

✊ MediaFx Take: From the People’s Perspective

From the grassroots view, India's delaying tactic is savvy—not rushingĀ into unfair trade concessions and protecting small farmers and local industriesĀ from agricultural liberalisation pressures. šŸ’¬ The August 1 window is a client check; even if talks go longer, India holds the line. šŸ‘·ā€ā™‚ļø Only a real deal—ensuring fair access and protecting domestic livelihoods—is acceptable. Pressure tactics may harm ordinary workers and exporters more than elites.

šŸ—£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! šŸ’¬šŸ‘‡

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