United States President Donald Trump is “disappointed” with the lack of progress on trade talks with India and feels that the 25 per cent tariff imposed on the country will “address and treatment” the circumstance, the White House financial consultant recommended on Wednesday.
National Economic Council Director Kevin Hassett showed that Trump was distressed over the method settlements on the proposed bilateral trade offer were held.
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No development in spite of series of talks
The 2 sides held a series of settlements on the trade offer however no concrete result emerged in view of particular controversial concerns.
Trump on Wednesday revealed the imposition of a 25 percent tariff on all items originating from India beginning August 1, plus an undefined charge for purchasing Russian petroleum and military devices.
The surprise statement came a day after Indian authorities stated that a United States trade group would check out from August 25 to work out a trade offer.
Move viewed as pressure strategy to press India
The statement by Trump is being viewed as a pressure strategy to get New Delhi to accept needs made by the United States, which has, in current days, got beneficial trade handle significant partners like Japan, the UK and the European Union.
Hassett stated India has actually had a market that’s been basically near to American items while the United States has actually been broad open to theirs.
He suggested that Trump was annoyed with the absence of development that the United States made with India, however “feels that a 25 percent tariff will attend to and correct the circumstance in such a way that’s great for the American individuals”.
In a post on social networks, Trump stated that the United States has an enormous trade deficit with India and likewise criticised India for purchasing a “huge bulk” of its military equipment and energy from Russia.
“Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country,” Trump said.
“Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of energy, along with China, at a time when everyone wants Russia to stop the killing in Ukraine — All things not Good!” he added.
“India will for that reason be paying a tariff of 25 percent, plus a charge for the above, beginning on August 1st,” Trump stated.
Hassett mean long-lasting United States method on India
Hassett, reacting to a concern on India dealing with a service charge for its purchase of Russian oil, stated Trump and United States Trade Representative Jamieson Greer will have more details on that “soon”.
On the 25 percent tariff on India, Hassett included that “what’s going to happen is that India is going to cut their prices to the US in order to maintain their market share”.
“That’s what everybody else has been doing, and then they might reconsider their practices, which have led to this higher rate. And over time, I would guess the Indian firms will be onshoring production in the US, and Indians might even open their markets more to us, so that we reconsider a future trade deal,” he said.
On the tariff, Partner at The Asia Group Nisha Biswal said in a statement that the US is using “hardball tactics” when there is an ambitious deal already on the table.
“There were many reasons why the final deal seems to have faltered. One, President Trump wanted to retain a minimum 20 per cent baseline tariff on India; this was a non-starter for New Delhi,” she said.
Biswal, who was Assistant Secretary for South and Central Asian Affairs at the Department of State from 2013 to 2017, added that Trump wanted US agricultural and dairy exports to India and New Delhi has gone as far as it can for now given domestic sensitivities.
Trump wants direct deal with Modi
Trump also wanted to directly negotiate with Prime Minister Narendra Modi since he felt that the deal did not go far enough, while New Delhi thought it had an expansive deal with the US Trade Representative and “didn’t want Trump to reopen or renegotiate terms like Vietnam”, she said.
“Trump is now exerting maximum pressure on India to get Modi’s attention. Modi may want to examine what Japan, the EU and China did, all of whom have faced Trump’s ire. Keep cool, retaliate if you must, but keep the channel open,” Biswal said.
“Trump wants more than what his negotiators got, and India needs to be ready with what it will give him. While he is throwing everyone in the mix — defence, Russian oil etc. – he is looking for a deal and this is how he negotiates, friend or foe. The real tragedy would be if both sides walk away from a big win. And the implications for US businesses and India’s economy could be quite severe,” she added.
Published on July 31, 2025
