Trump Announces New Tariffs, Says US-India Deal Near Completion

• US is close to finalizing a trade deal with India, says Trump.
• New tariff rates announced on 14 countries, effective August 1.
• India’s reciprocal tariff set at 26%, with negotiations ongoing before July 9 deadline.

In a decision with great implications for global trade and manufacturing, former US President Donald Trump announced that the United States was very close to completing a two-way trade agreement with India, all this while his administration announced higher import tariff rates for 14 nations.

Trump spoke at the White House and said that has been done with the UK and China, and India is not far behind. Trump said “We're close to making a deal with India," adding some of these countries will receive official notifications instead of negotiated deals, abandoning the U.S. negotiating position in trade relationships, consistent with Trumps "America First" approach.

On July 8 Trump imposed 25% tariffs on goods made in Japan, and South Korea, effective August 1 with the tariff extending to 12 other countries, including on Myanmar and Laos: 40% Cambodia and Thailand: 36% Serbia and Bangladesh: 35% Indonesia: 32% South Africa, Bosnia, Kazakhstan: 30% Malaysia and Tunisia: 25%.

Trump published the letters that were sent to Japan and South Korea before this tariff on his platform, Truth Social, and urged them to change their terms with the trade to avoid additional tariffs: 'Although the Administration is prepared to sanction unfair practices, it is always willing to talk and come to flexible deadlines.

Also Read: Trump Confirms China Deal, Signals Major Trade Pact With India

India, which previously faced a 26% reciprocal tariff under the "Liberation Day" plan and whose tariffs were compared to the 52% tariff it places on US goods. While the April 2 tariff announcement is going into law on April 9, it allowed a 90-day pause for countries to renegotiate. That pause ends on July 9, and currently, just three countries - UK, China and Vietnam - have settled agreements with Washington.

When asked about the August 1 deadline, Trump noted that while it's "hard," he is open to some flexibility if countries indicate a desire to have mutually constructive full engagement. According to White House Press Secretary Karoline Leavitt, Trump is creating "tailor-made plans for every country" to have an equity in balanced trade relationships.

This would be a first-of-its-kind strategy that is anticipated to impact global supply chains and trade relationships to produce an equity between nations with the emergence of fast paced growing markets like India and Southeast Asia.