US President Donald Trump announced on July 8, 2025, that the United States is close to finalizing a trade deal with India, even as he unveiled a new wave of tariffs targeting 14 other countries, including Thailand, Myanmar, Bangladesh, South Korea, and Japan, set to take effect on August 1.

Trump made these remarks while hosting Israeli Prime Minister Benjamin Netanyahu at the White House, emphasising that while the US had already secured trade agreements with the United Kingdom and China, negotiations with India were in their final stages but not yet concluded.

Key points from Trump’s announcement and the trade context:

Negotiations With India: Talks between US and Indian negotiators have focused on reducing tariffs, but disagreements remain, particularly over access to India’s dairy and agricultural sectors. India has been reluctant to fully open its markets to US agricultural products, especially regarding genetically modified crops and dairy, citing the need to protect the livelihoods of millions of its farmers.

Tariff Threats And Deadlines: Trump reiterated that countries unable to reach deals with the US would face new or increased tariffs. Formal letters outlining these tariffs have been sent to the 14 affected nations, with rates varying by country—Myanmar and Laos face the highest at 40%, while others like Thailand and Cambodia face 36%, and Japan and South Korea 25%.

Reciprocal Tariff Policy: The letters warn that if these countries retaliate by raising tariffs on US goods, the US will increase its tariffs by an equivalent amount. However, Trump also indicated a willingness to lower tariffs if countries adjust their trade policies in line with US demands.

Deadline Extension: The original deadline for countries to make trade deals or face higher tariffs was July 9, but Trump has extended this to August 1 via an executive order, giving negotiators more time to reach agreements.

India’s Position: Indian officials have signalled willingness to make a deal that serves national interests but have resisted pressure to meet deadlines or make concessions that could harm domestic sectors. Recent reports suggest the two sides are nearing a "mini" trade deal, with larger, more comprehensive agreements to be discussed in the future.

The US is on the verge of a trade agreement with India, which could help India avoid steep new tariffs, while 14 other nations will face significant tariff hikes unless they reach their own deals with Washington. The situation remains fluid, with ongoing negotiations and a new deadline set for August 1.

Based On ANI Report