United States president Donald Trump on Tuesday said that Washington was nearing a trade deal with India after it imposed fresh tariffs on 14 countries. The remarks came as Trump hosted Israeli prime minister Benjamin Netanyahu at the White House for ceasefire talks.
"We made a deal with the United Kingdom, we made a deal with China, we're close to making a deal with India. Others we met with, we don’t think we’re going to be able to make a deal. So we just send them a letter,” Trump said.
The remarks came after the US sent tariff letters to key trading partners including South Korea, Japan, Thailand and Bangladesh. The new sanctions are set to take effect from August 1. "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," the US President said.
Other countries that received Trump’s letters include Bosnia and Herzegovina, Cambodia, Indonesia, Kazakhstan, Laos, Malaysia, Myanmar, Serbia, Tunisia, and South Africa.
According to the letters, South Korea and Japan will each face a 25 percent tariff. Myanmar and Laos are set to be hit with 40 percent tariffs, while South Africa will face a 30 percent tariff. Kazakhstan, Malaysia, and Tunisia will each be subject to 25 percent tariffs. In addition, Bosnia and Herzegovina will see a 30 percent tariff while Bangladesh and Serbia will each face 35 percent. The highest tariffs have been imposed on Bosnia and Thailand with 36 percent each. Indonesia will see a 32 percent tariff.
India-US Deal
India and the US have been pushing to finalise a trade deal but have been unable to come to terms on US dairy and agriculture. Genetically modified crops are another red line that the US is pushing for. Washington also aims to have greater access to India’s agriculture and dairy markets.
According to reports, India is also pushing for concessions on various exports and reciprocal tariffs.
How much does the US Trade with India?
The U.S. was India’s largest trading partner in 2024-25 with bilateral trade valued at $131.84 billion (Rs. 11.35 lakh crore).
According to the United States Office of Trade Representative, U.S. total goods trade with India was an estimated $129.2 billion (Rs. 11.13 lakh crore) in 2024. U.S. goods exports to India in 2024 were $41.8 billion (3.60 lakh crore), up 3.4 percent ($1.4 billion) from 2023. U.S. goods imports from India totaled $87.4 billion (Rs. 7.52 lakh crore) in 2024, up 4.5 percent ($3.7 billion) from 2023. The U.S. goods trade deficit with India was $45.7 (Rs. 3.93 lakh crore) billion in 2024, a 5.4 percent increase ($2.4 billion) over 2023.
