US, India Close To Trade Deal Ahead Of Tariff Deadline
The United States is close to finalizing a mini trade deal with India, President Donald Trump announced on Tuesday, as his administration issued reciprocal tariff notices to several global trading partners. The move follows Trump’s earlier imposition of a 26% tariff on Indian imports in April 2025, which was later eased to 10% for a temporary 90-day period, set to expire this week.
“We’ve made deals with the UK and China. India is next,” Trump stated, highlighting his administration’s push to rebalance global trade. He warned that if negotiations aren’t concluded swiftly, tariffs will return to the original 26% rate.
Back-channel talks between Indian and US trade officials in Washington have intensified in recent weeks, with both sides working on a limited agreement. Sensitive sectors such as agriculture and dairy have been excluded from the current discussions, with a broader trade pact expected in future rounds. India is pushing for improved access for labour-intensive exports like textiles and electronics, while the US is demanding concessions on agricultural imports and digital trade.
Trump also confirmed that 25% tariffs will be imposed on countries including Japan, South Korea, Bangladesh, Thailand, Myanmar, Indonesia, and South Africa starting August 1. He left the door open for revisions, saying changes could be made “if they have a cause.”
Analysts warn that the return of Trump’s hardline “America First” trade stance could disrupt global supply chains and reverse the trade-friendly environment that prevailed under the Biden administration. Indian exporters, particularly in textiles, electronics, and IT services, may face renewed pressure if negotiations falter and higher tariffs are reinstated.
