President Donald Trump announced Monday evening that the United States is on the verge of concluding a trade pact with India as the deadline for America’s April 2 ‘reciporal tariffs’ was extended to August 1.
“We’ve finalised agreements with the United Kingdom and China, and we’re very close to securing a deal with India,” Trump told reporters after he hosted Israeli Prime Minister Netanyahu for dinner at the White House.
A CNBCTV18 report had stated on July 6 that the two countries are likely to wrap up trade talks within the coming 48 hours. The report had further noted that the negotiators from both sides have concluded talks on mini trade, while larger deals will be discussed post July 9.
Read Also | India and US edge closer to mini trade deal: Key sectors excluded
The Trump administration has already issued formal notices to 14 other countries including South Korea, Japan, South Africa, Laos, and Myanmar informing them of the substantial new tariffs that will be enforced starting August.
In letters shared on his Truth Social platform, the two-time US President warned trading partners that any retaliatory tariffs would be met with equivalent hikes, and he confirmed that existing sector-specific tariffs, like the 25% duty on Japanese vehicles, would remain unchanged rather than being stacked on top of the new rates.
“If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge,” Trump said
Only Britain and Vietnam have so far secured deals to avoid the increases, while according to recent reports, India is likely to announce a deal soon, as well.
Where is the US-India trade deal at?
The announcement comes days after Indian negotiators returned to New Delhi after extended talks on the ambitious India-US free trade agreement that is due to be concluded by fall 2025.
The Republican leader had slapped 26% tariffs on Indian goods in his April 2 order, which was later cut down to 10% basic duty until July 9, now extended by nearly another month. However, under the interim arrangement, India will be spared the full impact of the originally proposed tariff hit while both countries continue talks within a structured review framework.
Meanwhile, Union Minister of Commerce Piyush Goyal had said days earlier that the PM Modi-led government will not be signing any agreements under an external “deadline.”
“India never does any trade deal based on deadline or time frame. When the deal is done properly, and is completely finalised and is in the country’s interest, then we will accept it,” the union minister had said.
According to Goyal, New Delhi has no plans of sending negotiators back to Washington on the matter anytime soon.
India has been pressing for tariff reductions and expanded access to the American market for its labor-intensive sectors. In return, the United States has pushed for permission to export genetically modified (GM) crops and cattle feed to India—proposals that continue to be both politically and economically contentious for New Delhi.
