As most international locations, together with India, couldn’t attain an interim take care of the US by July 9, Trump determined to push again the tariff deadline to August 1.
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India is bracing for increased tariffs from the US as its commerce pacts with Indonesia, Japan, the Philippines and Vietnam reveal that Washington will not be sparing any nation regardless of the concessions they provide, sources stated.
Consultants advise that India mustn’t slash all tariffs, give market entry for delicate objects, decide to massive purchases, and quit management over its rules in key areas as a result of, as commerce pacts already finalised by the US counsel, all these mixed are not any assure in opposition to imposition of tariffs.
“We already know the tariffs which might be being imposed on some international locations. By August 1, it could be clearer the place India stands when it comes to most of its competing international locations. As soon as there’s readability, plans will be made on methods to take care of the upper tariffs,” a supply monitoring the event informed businessline.
Reciprocal tariffs
Indonesia has agreed to get rid of 99 per cent of its tariffs on US whereas Washington will impose a reciprocal tariff of 19 per cent on Indonesian items, per US President Donald Trump.
Japan will “open their nation to commerce together with automobiles and vans, rice and sure different agricultural merchandise, and different issues,” Trump introduced on Tuesday. Japan would additionally make investments $550 billion within the US and the U.S. would “obtain 90 per cent of the income”, Trump added.
In return, the US would impose reciprocal tariffs of 15 per cent on Japanese merchandise. This consists of vehicles, on which the US earlier imposed sweeping tariffs of 25 per cent on most international locations.
Trump additionally claimed that the Philippines, and earlier Vietnam, agreed to present tariff free entry to US merchandise whereas the US would impose reciprocal tariffs of 19 per cent and 20 per cent on the international locations respectively.
“The US-Indonesia commerce deal forces Jakarta to surrender key home rules which have lengthy protected its industries, meals security, and digital house…India now faces related US calls for, together with permitting remanufactured items, opening up agriculture and dairy, accepting genetically modified (GM) feed, and adopting US guidelines on digital commerce and product requirements,” identified Ajay Srivastava from the International Commerce Analysis Initiative (GTRI). India should keep alert and never give in, he cautioned.
The inclusion of rice within the July deal alerts the decline of Japan’s highly effective agricultural foyer which had traditionally resisted all makes an attempt to liberalise rice imports, Srivastava added.
One-sided final result
These are all one-sided outcomes, famous Abhijit Das, worldwide commerce professional.“India should proceed with its agency stand on all key issues. It ought to hold points of presidency procurement, IPRs and digital commerce out of the settlement” he stated.
Trump had introduced reciprocal tariffs on April 2 for many commerce companions with which the US had a commerce deficit after which suspended them until July 9, aside from a baseline tariff of 10 per cent. A reciprocal tariff of 26 per cent was introduced on India’s exports to the US.
As most international locations, together with India, couldn’t attain an interim take care of the US by July 9, Trump determined to push again the tariff deadline to August 1.
Nevertheless, final week’s spherical of commerce negotiations in Washington was additionally not capable of end in a breakthrough as India has been discovering it troublesome to satisfy the US’ bold calls for in most areas, together with agriculture.
Printed on July 23, 2025
