Trade Tensions Rise as Trump Rules Out Immediate Deal with India

In a fresh blow to India-U.S. trade relations, former U.S. President Donald Trump has stated there is “no deal yet” with India, raising the specter of increased tariffs that could severely impact bilateral commerce. The comment has sparked concern among Indian exporters, with the possibility of a 25% hike in tariffs now hanging in the balance.

The development comes amid ongoing talks between New Delhi and Washington aimed at resolving longstanding trade issues. However, Trump's latest remarks have thrown cold water on hopes of a near-term resolution.

“We’re talking, but there’s no agreement. They’ve been very difficult,” Trump told reporters when asked about the status of trade negotiations with India. He also criticized what he called India's "high import duties," claiming they were unfair to American businesses.

The proposed 25% tariff hike, if implemented, could hit a wide range of Indian goods — from automotive parts and textiles to steel and aluminum exports. Industry insiders say this move could cost Indian exporters billions and worsen the already delicate economic balance, especially amid global supply chain challenges.

India had earlier hoped for a breakthrough, particularly after restoring some trade benefits to U.S. companies and increasing imports of American energy. But Trump’s remarks have cast doubt on any immediate breakthrough.

Experts warn that further escalation could harm both economies. “Retaliatory measures and tariff wars don’t benefit anyone in the long run. This uncertainty could unsettle investors and businesses on both sides,” said a senior trade analyst.

Meanwhile, the Indian government has not issued an official response but is believed to be closely monitoring developments. Diplomats say backchannel talks are continuing in an effort to avert a full-scale trade standoff.

With global trade dynamics in flux, all eyes are now on how both nations navigate the delicate balance between protectionism and partnership.