President Donald Trump said on Wednesday the United States would impose a 25% tariff on Indian goods starting August 1, citing New Delhi’s high tariffs and strict non-monetary trade barriers. Following are the key issues that appear to have derailed the trade talks between the U.

The announcement came just two days before the August 1 deadline to impose reciprocal tariffs. However, in recent weeks, the US president has been repeating that both sides were close to striking a trade agreement.

The Indian government is assessing implications of US President Trump's announcement to impose 25% tariffs on Indian goods. Both countries strive for a mutually beneficial trade agreement amid negotiations.