US President Donald Trump is set to release his much-anticipated tariff letters on Monday. The move will determine whether the United States has reached a trade agreement with India or if his so-called “Liberation Day” tariffs will come into force.
The announcement follows Trump’s recent warning to BRICS nations, raising concerns over potential new levies on countries backing what he described as “anti-American policies.”
Donald Trump Tariffs: India, US Race Against Time to Finalize Deal
With the July 9 deadline fast approaching, India and the United States have been locked in intense negotiations over a bilateral trade deal. Talks were triggered after Trump raised tariffs on Indian goods to 26 percent – up from the previous 10 percent.
Following the initial announcement of tariffs, Trump introduced a 90-day pause for all countries, which he later extended to August 1. If no agreement is reached, the higher tariffs will take effect.
However, key sticking points – particularly in the automobile and agriculture sectors remain unresolved. Trump has also warned of an additional 10 percent tariff on countries supporting BRICS’ stance, which could impact India’s trade relationship with the US.
India-US Trade Negotiations As Trump tariffs Loom
In an effort to reach common ground, Indian and US teams held weeks-long discussions in Washington. India’s negotiating team, headed by chief negotiator Rajesh Agrawal, recently returned to Delhi after intensive talks with the Trump administration.
The aim is to finalize a trade deal before July 9 to avoid the 26 percent tariff—comprising a 16 percent impending increase plus the existing 10 percent duty.
India has maintained that any agreement will be guided by “national interest” rather than deadlines. According to reports, both sides are working towards a “mini” trade deal that could serve as the foundation for broader negotiations in the future.
While no official details have been released, officials indicated that India might manage to keep its tariff rate at the existing 10 percent level.
Donald Trump Hints at “Different Kind of Deal” with India
Speaking to reporters aboard Air Force One, President Trump appeared optimistic about reaching an agreement with India.
“We are going to have a deal,” Trump said. “It is going to be a deal where we are able to go in and compete. Right now, India does not accept anybody in. I think India is going to do that, and if they do that, we are going to have a deal for much less tariffs.”
Despite the strong diplomatic ties between Trump and Prime Minister Narendra Modi, uncertainty continues to hang over the outcome of the talks.
Donald Trump’s Latest Warning Against BRICS Nations
Trump’s latest warning came after the recent BRICS Summit in Rio de Janeiro, where the group of ten nations criticized American and Israeli military actions in Iran. Prime Minister Modi, a key figure at the summit, also spoke against the double standards faced by the Global South—remarks widely seen as a veiled criticism of Western powers.
The BRICS bloc further denounced the use of tariffs as a tool of intimidation, adding another layer of tension to the ongoing trade discussions.
Trump Tariffs Impact: What Lies Ahead for India?
If India fails to finalize a deal before the deadline, the 26 percent tariff on Indian goods will come into effect. Should Trump choose to apply the additional 10 percent penalty for BRICS alignment, the total tariff could soar to 36 percent—posing a significant challenge for India’s exporters.
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
