Will India & US Sign A Mini Deal In The Next Few Hours?

This could mean that tariffs are set at around 10 per cent, which is the same rate that the US has fixed for specific sectors — iron and steel and auto components.

“There are issues which need to be resolved and nothing should be done in any hurry, as eventually, that won't work,” a person familiar with the developments told The Secretariat.  

Rajesh Agrawal, Additional Secretary, Ministry of Commerce and Industry, has been leading the negotiations from the India side.

“India does not negotiate under deadlines. We negotiate keeping national interest in mind, and national interest is paramount in all our global engagements,” Commerce and Industry Minister Piyush Goyal said at a function in Bengaluru.

A few experts said India’s loss will be manageable, even if the trade deal does not come through within the July 9 deadline. “But once a trade agreement is signed and things do not work out, it may be even more of a problem for domestic exporters,” a source said.

Trump Tariffs

With decisions on tariffs now becoming a part of the routine exercise, Washington announced deferring the decision to impose reciprocal tariffs on 14 countries till August 1, including Japan and South Korea. The deadline for the tariff pause window ends in a day. 

While this may have come as a relief for some, Trump said that any retaliatory move may mean a higher tariff. Both Japan and South Korea come under the 25 per cent tariff bracket. In April, Washington had set a 24 per cent tariff on Japan.

Trump shot off letters to these countries to convey his decision on tariffs. Among other countries, Malaysia, South Africa, Myanmar and Laos have been slapped with new tariff rates of 40 per cent.

So far, Trump’s tariff pressures have worked with a few countries. For example, Canada said it was stepping back on the digital services tax to support trade negotiations.

While the US has been in talks with a host of countries including India for trade agreements, it has managed to ink only one so far — with the UK.

Though Trump’s tariff policies are aimed at boosting manufacturing in the US, the process will take time. Many now feel it may ultimately not work.