Trump Tariff Decision Today: Will India Get a Trade Deal or Higher Taxes?
US President Donald Trump is expected to announce new Trump Tariff decisions today. The big question is whether India and the US have reached a trade agreement, or if India will face more taxes on its exports to America.
Background: What’s Happening?
India and the US have been in talks for weeks, trying to finalize a trade deal before Trump’s new tariff rules kick in on July 9. Earlier, Trump raised tariffs on Indian goods from 10% to 26%. He later paused this increase for 90 days, giving countries more time to negotiate. This pause is now extended until August 1.
Trade Deal Talks
Indian officials, led by top negotiator Rajesh Agrawal, recently returned from Washington after long discussions. A deal is expected before the July 9 deadline. If not, the full 26% tariff could apply to Indian goods.
India has said that it will not rush the deal and will only agree to it if it serves the country’s best interest. Reports suggest that both sides might agree on a “mini” deal first, which could lead to a bigger agreement later.
Some officials believe that the tariff may remain at 10% for now, avoiding any increase.
What Did Trump Say?
Speaking to reporters on Air Force One, Trump said a deal with India is likely, but it may be a “different kind of deal.” He criticized India for not opening its markets enough to American companies and said that if India allows more access, the US would agree to lower tariffs.
Will Tariffs Go Up?
Despite friendly ties between Trump and PM Modi, uncertainty remains. Trump recently warned BRICS countries after their summit in Brazil, where they criticized the US for using tariffs as pressure.
At the summit, PM Modi spoke against unfair practices targeting the Global South, which seemed like a subtle message to the West. BRICS leaders also disapproved of using tariffs as a threat.
If India and the US don’t reach a deal, the 26% tariff will start. If Trump decides to add another 10%, the total tax on Indian goods could go up to 36%.
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