US 'very close' to finalizing trade deal with India: Trump
What's the story
US President Donald Trump has announced that his administration is "very close" to finalizing a trade deal with India. The announcement comes as the deadline for America's reciprocal tariffs has been extended from July 9 to August 1. "We've finalized agreements with the United Kingdom and China, and we're very close to securing a deal with India," Trump told reporters at a White House dinner with Israeli Prime Minister Netanyahu.
Tariff notification
US has notified tariffs on 14 countries
The Trump administration has formally notified 14 other countries about substantial new tariffs starting in August. US has levied new tariffs of 25% on imports from Japan, South Korea, Kazakhstan, Malaysia, and Tunisia. Imports from South Africa and Bosnia and Herzegovina would face a 30% tariff. Indonesia is set to face a 32% tariff, while Bangladesh and Serbia would be subject to 35%. Cambodia and Thailand are listed at 36%, and the highest tariffs—at 40%—are for Laos and Myanmar.
Tariff impact
Trump had initially imposed a 26% tariff on Indian goods
Trump had initially imposed a 26% tariff on Indian goods in his April 2 order. However, the rate was later reduced to a basic duty of 10% until July 9. Now, the deadline has been extended to August 1. This approach suggests a strategy of gradual negotiation with India, while simultaneously applying pressure on other countries through new tariffs.