Trump slaps new tariffs on dozen countries as India-US trade deal awaits final nod

Mint

15 hours ago

NEW DELHI
:
US President Donald Trump has announced a sweeping set of new tariffs, effective 1 August, on imports from more than a dozen countries, including key Asian economies such as Thailand, Cambodia, Bangladesh, Indonesia, Malaysia, Japan, and South Korea.
India, notably, remains off the list—for now—amid ongoing negotiations over a bilateral trade agreement (BTA), which remains unsigned on the President's desk.
Tariff breakdown: Asia hit hardest
Trump announced the tariffs through letters posted on his social media platform Social Truth. Laos and Myanmar were hit the hardest, facing duties up to 40%. Thailand retained its 36% duty from April, while Cambodia saw a slight reduction to 36% from 49%. Bangladesh's rate dropped to 35% from 37%, and Indonesia held steady at 32%.
Malaysia's duty rose by 1% to 25%, while both Japan and South Korea were slapped with new 25% tariffs. Non-Asian countries also affected include Bosnia (30%), Serbia (35%), Tunisia (25%), Kazakhstan (25%), and South Africa (30%).
Also read: 'US close to trade deal with India', Donald Trump announces amid new tariffs on 14 countries
India holds its ground—for now
India, which has offered multiple trade concessions to the US in recent months, was conspicuously absent from the tariff list. This gives the country a pricing edge in labour-intensive sectors like textiles, apparel, electronics, and toys, where its Asian competitors now face stiffer duties.
'As these rival exporters contend with steeper duties, Indian products are likely to gain a pricing edge, offering a strategic opening for Indian manufacturers to expand their footprint in the US and attract greater sourcing attention from American buyers," said Ajay Sahai, director general, Federation of Indian Export Organisations (FIEO).
The tariff hike comes just 48 hours before the 9 July deadline for the 90-day pause on Trump's Reciprocal Tariff Policy expires. While the US Trade Representative (USTR) has cleared the draft India-US trade deal, the final sign-off awaits Trump's approval.
Indian officials say the agreement is unlikely to be concluded without top-level political intervention, especially on contentious issues like agriculture, dairy, and genetically modified seeds.
The move, detailed through tariff letters signed by Trump and posted on his social media platform, Social Truth, comes just as the much-awaited India-US Bilateral Trade Agreement (BTA) remains unsigned and pending on the President's desk.
'The deal is ready on paper, but it's now a political call," a government official said. 'If it's not signed in time, some Indian products with strong export interest may be kept out, and the same could apply to US goods. These could be taken up in later phases."
Indian negotiators remain cautiously optimistic that if the 9 July deadline is missed, it could be extended to 1 August—buying time for the trade deal. Until then, India is expected to be spared from a direct tariff blow.
Also read: Donald Trump announces 25% tariffs on imports from Japan and South Korea, warns against retaliation
Trump's statement
'Large and persistent US trade deficits pose an extraordinary threat to our national security and economy," Trump said in an executive order.
'The 90-day suspension of additional duties, implemented in April, was based on the sincere intentions of our trading partners. That suspension will now be extended until 1 August 2025."
'Where partners take significant steps to align with the United States on economic and national security matters, I may modify tariffs accordingly," he added.
The tariff hikes form part of Trump's broader Reciprocal Tariff Policy targeting countries he accuses of maintaining unfair trade barriers against American goods. With India offering market access in sectors like dairy and medical devices, New Delhi hopes its cooperative stance will spare it from a similar fate.
Also read: US trade deal down to the wire as tariff pause nears close