Saturday, March 29, 2025
Washington, July 8, 2025: U.S. President Donald Trump has announced sweeping new tariffs on 14 countries, some as high as 40%, but signaled a breakthrough in trade negotiations with India. During a press briefing at the White House alongside Israeli Prime Minister Benjamin Netanyahu, Trump said, “We’ve made deals with the United Kingdom, China, and now we’re very close to a deal with India.”
The announcement comes as the Trump administration finalizes plans to impose new tariffs starting August 1 on a range of countries, including Bangladesh, Thailand, South Korea, and Japan. Tariff rates range from 25% to 40%, indicating a tougher stance on trade imbalances and market access.
Bangladesh: 35%
Bosnia & Herzegovina: 30%
Cambodia: 36%
Indonesia: 32%
Japan: 25%
Kazakhstan: 25%
Laos: 40%
Malaysia: 25%
Myanmar: 40%
Serbia: 35%
Tunisia: 25%
South Africa: 30%
South Korea: 25%
Thailand: 36%
Trump said formal letters are being sent to these countries regarding the tariff changes.
Despite the aggressive global tariff push, Trump expressed optimism about finalizing a trade agreement with India soon. Talks held in Washington last week focused on removing barriers in agriculture, dairy, industrial goods, and market access. However, significant sticking points remain.
India’s Position:
Firm stance on protecting its agriculture and dairy sectors.
Seeks better U.S. access for leather, textiles, and footwear exports.
U.S. Demands:
Wider market access to Indian sectors including agriculture, dairy, GM seeds, and manufactured goods.
If a deal is reached, India could be spared from the upcoming tariff hike, or see reduced rates. Trump hinted this could be the case, saying negotiations are in their final stages and showing signs of “constructive resolution.”
With the August 1 deadline approaching, the outcome of the India-U.S. deal will determine whether New Delhi is spared from the sweeping tariff regime. Analysts believe a successful interim agreement could significantly boost bilateral trade relations and prevent disruption of key export sectors.
In Summary:
Trump’s new tariff regime affects 14 nations, but India may escape the hike as trade negotiations progress rapidly. Both sides are pushing to finalize a deal covering agriculture, dairy, and industrial goods, which could reshape India-U.S. economic ties.
