Will Donald Trump call PM Modi before announcing new tariff rates, after India denies his ceasefire role?

How much tariff will New Delhi face if the India-US trade deal is not signed by August 1, 2025? Will US President Donald Trump call Prime Minister Narendra Modi before he announces new tariff rates? Will he extend the deadline? The India Inc. and the Commerce Ministry mandarins may have been upset with these questions. Despite many rounds of talks between the top officials of the two countries, a consensus on many issues has eluded them. Time is running out; it is not likely that an agreement will be reached in the remaining few hours. What will happen now?

Will Donald Trump call 'his friend' PM Modi?

Donald Trump announced a tariff of 27% on Indian goods on April 9 and announced a pause for 90 days; he further extended the deadline to August 1, 2025. Meanwhile, many rounds of talks were held in the meantime, but a consensus has not been reached. Media reports suggest that the US president has not declared tariffs on any major country without talking to its head of government. He is most likely to call PM Modi before he announces new tariff rates, even if they are higher. If reports are to be believed, Trump’s intention to speak to "his friend" Modi has already been conveyed to New Delhi. 

Is Donald Trump upset with Narendra Modi?

However, analysts believe the Trump administration may be upset with the development taking place in the Indian parliament on Tuesday. Leader of the Opposition in the Lok Sabha, Rahul Gandhi, said that PM Modi should have the courage to say if the US President has told a lie. Coming under the pressure of the Opposition, PM Modi declared on the floor of the house that no world leader had ever asked him to stop targeting Pakistan and agree to a ceasefire. Participating in the debate in the Rajya Sabha on Wednesday, External Affairs Minister S. Jaishankar said, "I want to tell them (Opposition) that from April 22 to June 16 there has been no phone call between Prime Minister Narendra Modi and US President Donald Trump."

US President reiterates his ceasefire role

However, much to the chagrin of the Union government, Donald Trump reiterated his role in de-escalating tensions between India and Pakistan. While returning from his Scotland visit, the US president said, "Look, India’s been—they’re my friends, and he’s my friend. They ended the war with Pakistan at my request, and it was great. And Pakistan did also."

Talking about the trade deal with India, Donald Trump said, "We’re going to see. But India’s been a good friend. Over the years, they’ve charged higher tariffs than almost any other country. But now I’m in charge, and you just can’t do that." When asked if he might impose a higher tariff rate ranging from 20% to 25%, he said, "Yeah, I think so."