'Now I'm in charge': Trump hints at 25% tariffs on India as trade talks continue

With just days left before the August 1 deadline for potential new tariffs, US President Donald Trump warned that India could face duties as high as 25 per cent, citing long-standing trade imbalances. Despite the sharp tone, Trump maintained that the ongoing trade deal with India is “working out very well.”

“India has been a good friend. But India has charged basically more tariffs than almost any other country over the years,” Trump told reporters aboard Air Force One on Tuesday. “But now I'm in charge. And you just can't do that.”

The US has not issued a formal notice to New Delhi, as it did with other nations in past tariff disputes, leaving the final decision unclear just days before the self-imposed deadline.

India, meanwhile, has continued to emphasise constructive engagement. Commerce Minister Piyush Goyal said discussions were progressing smoothly and from a position of “strength and confidence.”

“India today negotiates from a position of strength, a position of confidence. Our discussions with the United States are progressing very well,” Goyal said on Sunday.

Foreign Secretary Vikram Misri, speaking last week during Prime Minister Modi’s UK visit, confirmed that talks on a potential Bilateral Trade Agreement (BTA) with the U.S. are active. “The contacts are underway, and we'll see how that goes,” Misri said.

Both governments have signalled a commitment to reaching a mutually beneficial trade framework. A senior Indian official confirmed earlier this month that “India is moving in terms of a BTA” and aiming for a balanced agreement that reflects the goals set by both leaders.

Outside trade, Trump used the moment to revisit his claim of helping broker the ceasefire between India and Pakistan following the April 22 Pahalgam terror attacks that killed 26 people. The U.S. President credited himself and Prime Minister Modi for de-escalating tensions.

“India, they’re my friends and he’s (PM Modi) my friend… they ended the war with Pakistan and by request, and I was great and Pakistan did also,” Trump said.

Indian officials, however, have previously disputed that version. They maintain that the ceasefire was initiated by Pakistan's military leadership, who approached their Indian counterparts directly to request a halt to hostilities.