New US Tariff Deadline: What It Means for India and Global Trade
The Biden administration has decided to defer the implementation of country-specific tariffs, initially scheduled for July 9, to August 1, following heightened trade negotiations with several partner nations, including India.
New Delhi: The Biden administration has decided to defer the implementation of country-specific tariffs, initially scheduled for July 9, to August 1, following heightened trade negotiations with several partner nations, including India.
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US Commerce Secretary Howard Lutnik confirmed the decision, stating that President Trump is currently finalising both tariff rates and bilateral agreements.
Trump Aims to Seal Deals by July 9, Notices Set to Go Out
President Trump announced plans to notify countries of impending tariff hikes via notification letters starting Monday (US time), with additional alerts expected on Tuesday. He emphasized:
“Sending notices is much simpler than negotiating 15 different deals… this is what you have to pay if you want to do business with the United States.”
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His target remains to secure final or letter-of-intent agreements by July 9, providing countries a narrow window to finalise deals.
Tariff Structure and Ongoing Trade Agreements
In April, President Trump imposed a base tariff of 10%, with additional duties reaching up to 50% for non-compliant countries.
So far, the US has successfully negotiated trade deals with both the United Kingdom and Vietnam, with more agreements reportedly in progress.
US Treasury Secretary Scott Bessent, speaking to CNN, added:
“If you don’t move things along, on August 1 you’ll revert to the April‑2 tariff level… so expect a flurry of deals.”
India–US Negotiations Continue, Milk and Crop Issues Unresolved
A high-level Indian delegation led by Rajesh Agrawal recently returned from Washington, where talks on agricultural and dairy trade remained inconclusive. The US has maintained a firm stance on opening its markets to these sensitive sectors.
Despite progress, both sides have yet to reach a final agreement, prolonging tariff relief for India as the August deadline looms.
Additional Tariff Threat Targets BRICS-Aligned Countries
President Trump also announced plans to levy an extra 10% tariff on nations aligning with what he called “anti-American BRICS policies.” The announcement escalates tensions around global trade alliances and geopolitical alignments.
What Lies Ahead: Key Dates and Investor Watchpoints
- July 9: Expected sign-off or letter of intent on bilateral trade deals
- August 1: New tariff deadlines with potential increases to April tariff levels
Global markets and exporters—especially from India—are watching closely, as final deals or tariff escalations could significantly impact agricultural and industrial sectors.
