India US Trade Deal: Pressure Tactics By Donald Trump or Blunder ? 25% + Penalty Tariff Decoded

US President Donald Trump's recent 25% tariff on Indian shares the expert Nisha Biswal Opinion that it might be a strategy to push a trade deal that was almost finalised. It is also examining the possibility of the two nations returning to the negotiating table to seal a historic trade deal.

#WATCH | Washington, DC | On US President Donald Trump announcing 25% tariff, plus a penalty on India, EX-US Assistant State Secretary and partner at the Asia Group, Nisha Biswal says, "...I had been hearing from both sides, until a few days ago was that things were very, very… pic.twitter.com/fDbGcZn2q2

— ANI (@ANI) July 31, 2025

Is It Just Pressure Tactics by Donald Trump?

According to Nisha Biswal, the EX US Assistant Secretary of State, negotiations between the US and India were almost finalised. Negotiations were also said to be on track towards a Phase One trade agreement, which indicates healthy diplomacy. Nevertheless, the considerable increase in tariffs by Trump seems to be one of those traditional pressure measures at the last mile. 

Why Ignoring the Indian Market Could Be a Blunder for the US?

With a population of over 1.4 billion, having a fast-growing digital and manufacturing economy, India is not a market any global power can afford to turn a blind eye to.

To the US, failure to tap into this would imply:

• Losing markets to China and the EU, which are expanding their business into India.

• Losing the golden opportunity of India, which has a growing middle class and is a significant market for consumer technology, energy, and agriculture companies.

• Reduction of co-operation in semiconductors, defence, AI, and clean energy in the future.

• Trump calls the tariffs decision to give leverage, but in the long term, it may become a lot more expensive to put India on the other side of the fence.

Is the Window Still Open for Negotiations? US Team will come to India to discuss tariffs

There is still a window open to negotiation, even after the unexpected announcement by  US President Donald Trump of a 25% hike in tariffs on Indian goods.  US Assistant Secretary of State Nisha Biswal stated that both countries were close to signing a Phase One trade deal, and this action might be a strategic drive rather than a breakdown. Indeed, a US delegation will soon visit India to discuss the new tariffs, evaluate the Indian position, and negotiate compromises on both fronts.