Understanding the India-US Trade Deal

Donald Trump has sent tariff letters to 14 countries, but India is not on the list. (AI image)

India is expected to soon finalize a trade deal with the US. President Donald Trump is pushing for this by sending formal tariff notices to several countries.

The US has given countries more time to finish their trade deals. The new deadline is August 1. Countries have a final three weeks to avoid specific tariffs.

This extension is part of a larger trade plan started on April 2. Trump identified about 60 countries that could face tariffs unless they agree to new trade terms with the US.

Donald Trump’s Tariff Plans

The Trump administration has announced different tariff rates for various countries:

• 25% for Japan, South Korea, Kazakhstan, Malaysia, and Tunisia
• 30% for South Africa and Bosnia and Herzegovina
• 32% for Indonesia
• 35% for Bangladesh and Serbia
• 36% for Cambodia and Thailand
• 40% for Laos and Myanmar

These tariffs will likely change trade patterns. They could increase costs for US consumers and cause problems in global supply chains.

So far, only the United Kingdom and Vietnam have agreed to these terms. China has a temporary agreement in place.

Why India Should Be Careful

Ajay Srivastava, founder of GTRI, noted that the US has given 14 countries a clear choice. They must either accept US conditions or face high tariffs.

“Trump’s model isn’t a free trade agreement. It’s a YATRA – Yielding to American Tariff Retaliation Agreement,” says the Global Trade Research Initiative (GTRI). They warn India to be cautious.

Donald Trump has sent tariff letters to 14 countries, but India is not on the list. The US and India hope to finish their trade deal soon.

“Time is running out. India is likely to announce a deal soon. But New Delhi must be careful,” Srivastava said in a PTI report.

Trade Agreements Are Not Permanent

A key point in the report is that trade deals under Trump are not permanent. Countries could still face more tariffs even after making a deal.

For example, Trump proposed a 10% tariff on BRICS countries, including India. He claimed they have “anti-American policies.” This shows how US trade decisions under Trump can be unpredictable and political.

India has given its final trade proposal to the US. They hope to finish a deal soon. But the GTRI analysis warns that this deal may not protect Indian exports from future tariffs.

According to the report, Indian exports could still face an extra 10% charge, even with a deal.