Trump Declares US "Close to Deal" with India Amidst New Global Tariffs

In a significant development for global trade, US President Donald Trump announced on Tuesday that the United States is "close to making a deal with India," even as his administration unveiled new tariffs set to impact 14 nations, including key Asian economies like Japan, South Korea, Thailand, Myanmar, and Bangladesh. These new duties are slated to take effect on August 1, 2025.

Speaking to reporters, President Trump affirmed his administration's assertive trade strategy. "We've spoken to everybody. ...it's all done," he declared, referring to the dispatch of "tariff letters" to various countries. "I told you we'll make some deals, but for the most part, we're going to send a letter. We're going to say, welcome to the United States if you'd like to participate in the greatest, most successful country ever."

He highlighted recent trade successes, stating, "We've made a deal with United Kingdom. We've made a deal with China. We're close to making a deal with India." This statement offers a glimmer of hope for India amidst escalating global trade tensions, as New Delhi seeks to avoid the heightened tariffs now facing several other nations.

Trump elaborated on his approach: "Others we met with, and we don't think we're going to be able to make a deal, so we just send them a letter. We're sending out letters to various countries telling them how much tariffs they have to pay. Some will maybe adjust a little bit depending if they have a cause, we're not going to be unfair about it."

While the August 1 deadline for these new tariffs appears firm, Trump did indicate a degree of flexibility. "I would say firm but not a 100 per cent firm. If they call up and they say we would like to do something in a different way, we will be open to that," he noted.

The new tariffs, some as high as 25%, were initially announced by Trump via his social media platform, Truth Social, targeting Japan and South Korea. This was swiftly followed by similar tariff letters dispatched to a broader list of countries, including Bangladesh, Indonesia, South Africa, Laos, and Malaysia. The President issued a stark warning: if comprehensive trade deals are not finalized soon, US import duties will revert to the higher rates that were initially set in April 2025.

This announcement comes on the heels of intense negotiations between Indian and US officials. A delegation of Indian representatives had been in Washington last month, engaged in frantic efforts to finalize a mutually agreeable trade deal and avert more severe tariff implications.

Earlier in April 2025, Donald Trump had initially announced a retaliatory tariff of 26% on Indian goods. However, this was later reduced to a 10% basic duty, with a 90-day suspension period that commenced on April 10. The current developments suggest that while India may be spared the immediate brunt of the new, higher tariffs, the pressure to finalize a comprehensive trade agreement remains palpable. The coming weeks will reveal whether India's diplomatic efforts have successfully navigated the turbulent waters of Trump's latest trade offensive.