Trade war: 'Not planning to extend tariff pause after July 9', says Donald Trump; India's trade team extends US stay

Time of India

4 hours ago

US President
has said he does not plan to extend the 90-day pause on additional global tariffs beyond July 9, even as India's trade delegation extended its stay in Washington in a final push to iron out differences before the deadline.
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The in-person negotiations between Indian and US officials, initially scheduled to run through June 27, were extended by a day, raising hopes of an interim trade agreement, Bloomberg reported, quoting officials.
India is seeking full exemption from the additional 26 per cent reciprocal tariff announced by the US on April 2. While the tariff was suspended for 90 days, the 10 per cent baseline tariff imposed by Washington remains in place.
Meanwhile Trump, in an interview with Fox News said he does not plan to extend the pause. "I don't think I'll need to," he said. "I could, no big deal."
Letters notifying countries of the upcoming tariffs will begin going out "pretty soon," he said. "We'll look at how a country treats us — are they good, are they not so good — some countries we don't care, we'll just send a high number out," Trump told Fox News.
Those letters, he said, would state: "Congratulations, we're allowing you to shop in the United States of America, you're going to pay a 25 per cent tariff, or a 35 per cent or a 50 per cent or 10 per cent."
The high tariffs, first announced on April 2, are set to be enforced unless individual countries reach trade agreements with the US. "There's 200 countries, you can't talk to all of them," Trump said. The Trump administration had set a goal of reaching 90 trade deals in 90 days
Meanwhile, the Indian side continues to resist key US demands, including Washington's push to open India's agricultural market to genetically modified crops — an ask New Delhi has rejected, citing risks to farmers.
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India is also unwilling to sign a deal that doesn't address both sectoral access and reciprocal tariffs on its exports, Bloomberg earlier reported.
Despite the challenges, Trump said last week that "a very big" deal with India was likely soon.
Why deal matters
For India, the goal is to protect sensitive sectors while gaining entry into the US market, the largest for global consumers. For the United States, the focus is on narrowing trade deficits, increasing its exports, and strengthening ties with a strategic partner as trade frictions with China continue.
What are USA's demands
The United States is urging India to open up sectors such as agriculture, dairy, and energy, and to reduce tariffs on products like soy, wheat, corn, ethanol, and apples, many of which are significant US exports to China. Washington is also seeking market access for genetically modified (GM) crops in India.
India, however, is resisting these demands, particularly in agriculture and dairy, citing the importance of safeguarding farmers and maintaining the Minimum Support Price (MSP) mechanism.
Negotiations have at times been marked by tension, as TOI reported earlier.
What India wants
At the beginning of the negotiations, the Indian government aimed to secure zero-duty access for several key export items, including textiles, leather products, pharmaceuticals, certain engineering goods, and auto parts. As TOI reported earlier that while American negotiators have shown interest in concluding the deal, they have conveyed to their Indian counterparts that the Trump administration is not in a position to offer zero tariffs immediately.
Separately, India has also sought protection from any future tariff measures once an agreement is reached.
Moreover, agriculture and dairy sectors are difficult and challenging areas for India to give duty concessions to the US. India has not opened up dairy in any of its free trade pacts signed so far.