As tensions simmer between New Delhi and Washington following a fresh wave of trade tariffs imposed by former US President Donald Trump, India’s Ministry of External Affairs (MEA) has stepped in to quash a series of speculative and misleading reports gaining traction online.
The MEA’s Fact Check unit took to X (formerly Twitter) to clarify that India is not reviewing tariff exemptions granted to US goods nor is it considering a suspension of bilateral agreements with the United States, both claims that had begun circulating in viral social media posts earlier this week.
This is FAKE News!#MEAFactCheck https://t.co/3dyvVcOYtA
— MEA FactCheck (@MEAFactCheck) August 3, 2025
“A fake news item circulating on social media claims India is reviewing trade exemptions for US goods in retaliation to recent US tariffs. This is entirely baseless,” MEA’s official fact-checking handle posted on Saturday.
A second statement swiftly followed, dismissing another widely shared claim that India was planning to “suspend bilateral treaties if hostile economic policies continue.” Officials called the report “false and misleading.”
Trump’s 25% Tariff Shock
The clarification from India’s foreign ministry comes in the wake of a surprise announcement by Donald Trump, who last week, via Truth Social, declared a 25% tariff hike on Indian imports. The move, effective August 1, was positioned as a response to India’s ongoing defence and oil engagements with Russia amid the war in Ukraine.
“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,” Trump wrote, also accusing New Delhi of creating “obnoxious non-monetary trade barriers.”
A day later, the former President escalated rhetoric further, posting, “India and Russia should take their dead economies and go down together.” The remarks have sparked outrage in diplomatic and trade circles in India.
Diplomacy Over Drama: Sixth Round of Talks Ahead
Despite the escalating rhetoric, sources close to the matter have confirmed that both India and the United States remain “intensely engaged” in resolving trade differences and are actively working towards a mutually beneficial agreement.
According to senior officials familiar with the developments, current negotiations are ongoing through virtual channels. A high-level American delegation is scheduled to arrive in New Delhi on August 24 for the sixth round of physical trade talks between the two nations.
“We are engaged virtually at present and are hopeful of ironing out the remaining issues during the upcoming in-person dialogue,” a government official said.
The upcoming round of negotiations is expected to be pivotal, especially given the sensitive timing of the tariff escalation and its potential impact on sectors ranging from pharmaceuticals and textiles to IT services.
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Not the First Trade Tiff
This isn’t the first time trade has become a sticking point between the two democracies. In 2019, under Trump’s earlier administration, the US had withdrawn India’s preferential trade status under the Generalized System of Preferences (GSP). Talks to restore that status have been in limbo ever since, with occasional breakthroughs followed by policy setbacks.
However, with both economies eyeing deeper cooperation amid shifting global alliances, experts say it is in the interest of both sides to find common ground, and fast.
