Aug 1 is hard tariff deadline, but US open to talks: Commerce Secy Lutnick

Business Standard

a day ago

United States Commerce Secretary Howard Lutnick confirmed on Sunday that August 1 is the 'hard deadline' for countries to begin paying new tariffs to the United States. The announcement comes as several nations, including India, race to finalise trade agreements before the new levies take effect.
'That's a hard deadline,' Lutnick said in an interview on CBS News. 'So on August 1, the new tariff rates will come in. Nothing stops countries from talking to us after August 1, but they're going to start paying the tariffs.'
Trump tariff delays and trade talks
US President Donald Trump first announced new tariffs on April 2, saying the goal was to protect American industries and push for fairer trade. The tariffs were delayed twice to allow for negotiations, but US officials now say there will be no further extensions.
Smaller nations, such as those in Latin America, the Caribbean, and parts of Africa, will face a baseline tariff of 10 per cent. Larger economies, like those in the European Union, could be hit with much higher rates, some as high as 40 per cent, according to letters sent out by the White House earlier this month.
Lutnick said the US prefers open trade, but countries that don't lower their trade barriers 'will pay a fair tariff to America'.
India races to reach trade deal with US
India and the United States just wrapped up the fifth round of trade talks on July 17 in Washington. The four-day discussions are part of ongoing efforts to create a bilateral trade agreement (BTA). The two countries are also working on reaching at least an interim deal before the August 1 tariff deadline.
India's lead negotiator, Special Secretary Rajesh Agrawal from the Commerce Department, led the Indian delegation. Key issues in the talks included agriculture, automobiles, and trade protections.
India is pushing for the removal of a 26 per cent tariff on its exports to the US, as well as relief from other US duties on steel (50 per cent), aluminium, and automobiles (25 per cent).
Meanwhile, the US seeks lower tariffs on American goods, including industrial products, electric vehicles, wines, apples, nuts, dairy items, and genetically modified crops.
Agriculture is a sticking point
One of the main hurdles in the talks is agriculture. India has so far refused to give duty concessions on dairy and farm products, citing concerns from domestic farmers. Several Indian farmers' associations have urged the government not to include these items in any trade deal.
Despite this, an Indian official said that both sides are open to packaging whatever progress is made as an interim deal, while continuing to work on a full agreement later this year, as earlier reported by Business Standard.
Indian exports to US rises in Q1
Amid this, trade between the US and India is on the rise. In the first quarter of this financial year (April–June), India's exports to the US rose by 22.8 per cent to $25.51 billion, while imports from the US increased by 11.7 per cent to $12.86 billion as companies rush to ship goods before the tariffs take effect.