US President Donald Trump has indicated that the 90-day tariff pause for most countries will not be extended by his administration beyond July 9, a development that places further pressure on nations, including India, to complete trade agreements with the US or risk paying higher tariffs.
In a Fox News interview, Trump confirmed that rather than the extension of the negotiating period, his administration will soon notify nations of new trade penalties unless individual trade agreements are reached. “I’d rather just send them a letter, a very fair letter, saying, Congratulations, you’re going to pay a 25 per cent tariff, or 20 per cent, or 40 or 50 per cent,” Trump said, underlining that the US will decide tariff rates based on how each country treats American interests.
India-US Trade Talks Enter Final Stage
India’s trade delegation has reportedly extended its stay in Washington as New Delhi and Washington push to iron out key differences before the crucial July 9 deadline. A preliminary trade agreement between India and the US is said to be in its final stages, with both sides aiming to announce a breakthrough soon. Trump also indicated he was optimistic about making a “very big” agreement with India and also warned that not every nation would receive a favorable deal. “Some countries, we don’t care. We’ll just send them a high number out, I could send one to Japan, Dear Mr. Japan, here’s the story: you’re going to pay a 25 per cent tariff on your cars,” Trump added. India’s Commerce and Industry Minister Piyush Goyal has said India and the US are in discussions for a “fair and equitable” trade deal that defends the interests of both economies. But there are still hang-ups over US insistence on increased access to India’s farm and dairy markets, and exports of genetically modified (GMO) crops, areas where India is still wary, as it cites domestic agriculture and food security issues.
In a similar development, Trump suddenly suspended trade negotiations with Canada following Ottawa’s imposition of a digital services tax on US tech giants such as Amazon, Google, and Apple. Trump dubbed Canada’s tax action as a “blatant attack” and promised to make new tariffs on Canadian products public within a week. On the other hand, the US has also submitted a new trade proposal to the European Union and is still in talks with Japan and other nations.
Though the Trump administration initially had an ambitious goal of securing 90 trade agreements in 90 days, the President himself realized the difficulty of negotiating individual pacts with almost 200 nations. With mere days remaining before the July 9 tariff deadline runs out, everyone now waits to see if India and the US can bridge differences and sign an interim agreement that will protect Indian exports from high new US tariffs.