Trump Renews Trade War Talk: 25% Tariff on India, Again Takes Credit for India-Pakistan Ceasefire

US President Donald Trump, on July 29, 2025, boarded Air Force One at Royal Air Force Lossiemouth to return to Washington. Just before the August 1 deadline for tariffs, Trump mentioned that the India-US trade deal was progressing well. However, he hinted at a potential 20% to 25% tariff on India.

During a press interaction aboard Air Force One, Trump addressed reports about India's possible preparation for these tariffs. He noted that India had been imposing higher tariffs on the U.S. compared to other countries. "India has been a good friend," Trump stated, adding that now he is "in charge" and such practices would end.

Trade Negotiations and Tariffs

Despite his comments, Trump hasn't sent any formal letters to India regarding the tariff imposition. Earlier, on April 22, he had imposed a 26% tariff on Indian goods but later paused these reciprocal levies. The U.S. President expressed optimism about the trade deals benefiting both nations.

Meanwhile, Union Minister for Commerce Piyush Goyal remarked that discussions between India and the U.S. were progressing positively. "India today negotiates from a position of strength," Goyal said, highlighting India's confidence in forming beneficial free trade agreements.

Bilateral Trade Agreement Discussions

Foreign Secretary Vikram Misri also commented on ongoing talks with the U.S. during PM Modi's visit to the UK last week. He emphasized active engagement with American partners regarding a potential Bilateral Trade Agreement (BTA). "The contacts are underway," Misri noted.

A senior government official mentioned on July 14 that India was making significant progress towards finalizing a BTA with the U.S., with both countries committed to their leaders' outlined path. The official stressed India's focus on achieving a mutually beneficial deal.

Ceasefire Claims and Regional Stability

Trump reiterated his claim of brokering a ceasefire between India and Pakistan after recent conflicts in May. The conflict followed April's Pahalgam terror attacks, which resulted in 26 deaths and led to India's 'Operation Sindoor' targeting terror camps in Pakistan and PoJK.

The U.S. President praised Prime Minister Narendra Modi's leadership for contributing to regional stability. "Look, India, they're my friends," Trump said, acknowledging India's role in ending hostilities with Pakistan.

However, India has consistently refuted Trump's claims about brokering peace. It clarified that Pakistan's Director General of Military Operations contacted their Indian counterpart to request an end to hostilities before agreeing on a ceasefire.

The ongoing discussions between India and the United States reflect both nations' commitment to strengthening their trade relationship while addressing regional security concerns collaboratively.