India-US trade deal: India is likely to be among the nations expected to conclude a trade agreement with the US in the near future, as President Donald Trump intensifies efforts by sending formal tariff notifications to various countries.The United States has extended the deadline for nations to complete bilateral trade agreements from July 9 to August 1, providing a final three-week period before comprehensive country-specific tariffs take effect.The deadline extension is part of a wider trade initiative launched on April 2, when Trump identified approximately 60 countries for specific tariffs unless they entered into new agreements aligned with US trade priorities.
Donald Trump’s Tariff Letters
The Trump administration’s recent announcement details varied tariff rates: 25 per cent for Japan, South Korea, Kazakhstan, Malaysia, and Tunisia; 30 per cent for South Africa and Bosnia and Herzegovina; 32 per cent for Indonesia; 35 per cent for Bangladesh and Serbia; 36 per cent for Cambodia and Thailand; whilst Laos and Myanmar face 40 per cent tariffs.Also Read | Donald Trump releases more tariff letters: Japan, South Korea, Myanmar, Malaysia & other countries to face up to 40% duties from August 1; check detailsThe increased tariffs are anticipated to affect trade patterns, leading to higher consumer costs in the United States whilst creating global supply chain difficulties.To date, only the United Kingdom and Vietnam have agreed to these terms, while a temporary agreement with China remains in effect.
Donald Trump’s Unpredictability: Why India Needs To Be Cautious
GTRI Founder Ajay Srivastava noted that the US ultimatums, which the White House terms as ‘final notices’, present the 14 countries with a straightforward decision: either accept US conditions or endure substantial tariff penalties.“Trump’s model isn’t a free trade agreement, it’s a YATRA – Yielding to American Tariff Retaliation Agreement,” the Global Trade Research Initiative (GTRI) has said, warning India to ‘tread carefully’.While Donald Trump has issued tariff letters to 14 countries, India is missing from the list, since the US and India hope to finalise the trade deal shortly.Also Read | Hoping for a US H-1B visa? Donald Trump administration’s stringent scrutiny likely; Indians should be prepared for…“With the clock ticking, India is seen as a top candidate for a deal announcement in the coming days…But New Delhi must tread carefully,” he said according to a PTI report.A significant finding in the report emphasises that trade agreements during Trump’s administration lack permanent security. Countries remain susceptible to additional tariff impositions even after finalising trade arrangements.A recent example illustrates this when Trump declared a 10% tariff proposal targeting BRICS countries, India included, alleging their “anti-American policies.” This demonstrates the arbitrary and politically-driven nature of American trade decisions under Trump’s leadership.Whilst India has presented its conclusive trade proposal and anticipates finalising an agreement with the US shortly, the GTRI analysis cautioned that such an arrangement might not safeguard Indian exports from subsequent unilateral tariff increases.According to the report, Indian exports could still face a minimum 10% additional charge, despite any agreement.Also Read | ‘India has drawn its red lines…’: Ahead of Donald Trump’s tariff deadline, officials say ‘ball in US court’ on trade deal; here’s what’s happening
