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US Close to Trade Deal With India, Says Trump After Slapping Tariffs on 14 Countries

US President Donald Trump on Tuesday declared that a US-India trade deal is close to fruition. It indicates possible progress in long-awaited bilateral trade talks as he approved a massive tariff increase on 14 nations.

Trump: Made Deals With UK, China, India Next

The president made the remarks at a White House Blue Room briefing. “We made a deal with the United Kingdom, we made a deal with China, and we’re close to making a deal with India,” he explained, without revealing the terms of the agreement being negotiated.

His comments were made while Washington dispatched letters to 14 nations, notifying them of fresh import duties taking effect on August 1. Nations targeted by the latest round of measures are Bangladesh, Bosnia and Herzegovina, Cambodia, Indonesia, Japan, Kazakhstan, Laos, Malaysia, Myanmar, Serbia, South Africa, South Korea, Thailand and Tunisia.

Myanmar and Laos are the most heavily affected, with tariffs as high as 40%.

For those nations we can’t negotiate with, we just send a letter,” Trump said. “We’re informing them what tariffs they’ll be paying. Some may be changed if they have legitimate concerns, we’re not going to be unfair.”

Deadline Pushed, India Talks Gain Time

The US administration had earlier scheduled July 9 as the deadline for imposing tariffs. But after a renewed round of talks with Indian officials in Washington last week, Trump now will reportedly sign an executive order to extend the deadline to August 1.
Asked whether the new date is final, the US President said, “I’d say it’s firm, but not 100% firm. If they call and say they want to do something differently, we’ll keep the door open.”

Indian officials reported that negotiations are ongoing but conceded that there are still sticking points. The largest obstacle remains India’s resistance to opening its farm industry to US imports, especially dairy and genetically modified (GM) goods.

India Looks to Shield Farmers, Relief from Tariff

India has relaxed some of its previous demands but insists on shielding its farmers from competition with big-time US agribusinesses, according to individuals close to the negotiations.

“Millions of Indian farmers’ livelihood is under threat. They cannot match the commercial-scale US dairy farms,” a top official stated.

India has also sought the removal of a 10% base tariff and a further 16% country-specific tariff charged by the US during an earlier trade war.

Goyal: India Ready for Deal, But Won’t Rush

Last week, Union Commerce Minister Piyush Goyal announced that India is willing to have a trade agreement with the US, but not if it undermines the nation’s core interests. “We are willing to negotiate, but not at pressure or artificial timelines,” he stated.

With both sides indicating flexibility, a breakthrough deal may be on the cards if an agreement is reached by the August 1 deadline. 


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