04-07-2025
Tariff drama 2.0: India's last push to seal US trade deal with Trump
US President Donald Trump is set to send letters to a dozen countries on Friday, warning them of new US tariffs starting August 1. Nations have until July 9 to cut deals — or face taxes as high as 70 per cent on their goods.'They'll range in value from maybe 60 or 70 per cent tariffs to 10 and 20 per cent tariffs,' Trump like India, are racing to strike last-minute deals. Others, such as China and Vietnam, already face steep tariffs. More may soon join them.
Why it matters: Trillions of dollars in global trade are at stake. Countries not covered by new US trade deals risk heavy duties that could disrupt supply chains, raise prices, and trigger retaliatory measures. India's nearly USD 53 billion export sector could face immediate damage if no agreement is NUMBERSJuly 9: Deadline for countries to reach deals with the US26 per cent: Earlier proposed US tariff on Indian exportsUSD 53 billion: Estimated value of India's annual exports to the US55 per cent: Current tariff on Chinese goods20 per cent: Tariff on Vietnamese exports under new deal40 per cent: Tariff on transshipped goods from China via VietnamIn-depth: Trump announced a 10 per cent tariff on April 2 but delayed enforcement by 90 days for negotiations. As that deadline nears, countries are scrambling to make last-minute deals. The US has finalised deals with the UK and Vietnam, and eased terms with China, though tariffs remain agreed to a deal that applies a 20 per cent tariff on direct exports and a 40 per cent tariff on rerouted goods from countries like China. That's lower than the original 46 per cent Trump proposed, but still well above pre-2024 position: India is in the final stretch of negotiations. An announcement is expected within two or three days. Talks centre on the US demand to open up India's agriculture sector to genetically modified corn and soy imports — a politically sensitive issue. India currently bans the cultivation of GM food crops and opposes new imports on the grounds of food security and rural the stakes are high. If no agreement is announced by July 9, nearly all Indian goods entering the US could face a 26 per cent tariff, disrupting trade in pharmaceuticals, textiles, and automotive parts.A parallel legal battle over Trump's tariff powers is also playing out in court. A federal ruling declared most tariffs illegal, but they remain in effect pending an appeals hearing on July they're saying: 'We're probably going to be sending some letters out, starting probably tomorrow, maybe 10 a day to various countries, saying what they're going to pay to do business with the US,' said Trump on Thursday.'We will not have 100 per cent winners. The FTA will be done in phases, so tricky areas with greater political ramifications will be dealt with later,' said Rajiv Memani, President of the Confederation of Indian Industry.'We are very close to an agreement with India,' said Scott Bessent, US Treasury Secretary.- EndsTune InMust Watch
