Trade Winds and Tariffs: Trump’s Pressure on India Mini-Deal a Tactic, Not a Death Blow
NEW DELHI, India – August 2, 2025: Even with some tough trade moves from the U.S., like slapping 25% tariffs on everything India sends over, people in charge and experts are saying that India and the U.S. could still work out a mini-deal. Even though U.S. President Donald Trump has said some not-so-nice things and brought in these tariffs, most think it’s just a way to get India to give in on some things, not a sign that the talks are totally off.
Trump’s Tariffs and What’s Really Going On
Back on Wednesday, July 30, 2025, President Trump said there would be a flat 25% tariff on Indian goods starting August 1. He also said he might add another penalty because India keeps buying oil and weapons from Russia. This is a big step up in how the U.S. is dealing with India on trade, especially after months of talks not going anywhere.
Trump hasn’t held back in what he’s been saying, accusing India of having annoying trade rules that aren’t about money and some of the highest tariffs around. He’s also saying that this trade issue is connected to India’s relationship with Russia because of what’s happening in Ukraine.
Indian officials are trying to stay cool, even though these tariffs are a big deal. The Indian Ministry of Commerce & Industry put out a statement saying they’re looking into what this means but are still wanting to finish a fair deal that works for both sides.
Talks Are Still Happening
The good thing is, they’re still talking behind the scenes. Right before Trump’s announcement, a group from the U.S. was supposed to visit New Delhi in late August to talk about the Bilateral Trade Agreement (BTA) for the sixth time. The fact that this hasn’t been called off shows that both countries are still trying to work something out.
For months, the people negotiating have been trying to nail down the first part of a bigger trade deal, a mini-deal. This would fix some of the main problems and make it easier to get to a bigger agreement later.
These tariffs have made it harder to get that mini-deal done as fast as they wanted, but experts still think there’s a chance for a deal in the future. A lot of people think these tariffs are just a way to pressure India to budge on some of the tough issues.
What’s Making the Talks Hard
The main sticking points in these talks are well-known and go way back. The U.S. keeps saying it wants to sell more of its farm products, especially dairy, in India, and wants India to lower its tariffs on a lot of stuff.
But India hasn’t been giving in. The government has said that it can’t open up its farming and dairy industries because it needs to protect its farmers and because of religious and cultural things, like how U.S. dairy farms use feed with meat in it.
India is also not wanting to change its rules about where data has to be stored and how much medical devices can cost. They see these as important for the country and for becoming self-sufficient with the Atmanirbhar Bharat plan.
India’s Calm Response
India is acting smart and staying strong in its talks. The Indian government is saying it will do what it takes to protect the country, including its farmers and small businesses.
The U.S. isn’t giving India any special treatment, even for important stuff like medicine and electronics, which it did for other countries. This shows that the U.S. is pretty annoyed. It also puts India at a disadvantage compared to countries like Vietnam and Bangladesh, which have lower tariffs.
Even with this, India isn’t freaking out or putting its own tariffs on U.S. goods. It’s trying to show that it’s confident in its economy and doesn’t want to make things worse. Indian officials are saying that the U.S. is still the biggest place they send exports, so any deal has to be good for both countries.
What’s Next: A Risky Game
What’s happening now is like a risky game where both sides are seeing how far they can go. President Trump is using tariffs to put pressure on a big trading partner. At the same time, India is standing up for its right to do its own thing and have relationships with different countries without picking sides.
Groups like the Federation of Indian Export Organisations (FIEO) are saying they’re disappointed but still hoping that the tariffs won’t last forever and that a deal will happen eventually. They think that both countries have the same goals in the long run, like keeping China in check.
When the U.S. trade group visits India, it will be a big test. The question is whether they can find some common ground on the big disagreements or if these tariffs will stay in place and make it harder for them to work together on the economy.
