The US is set to increase tariffs on global trade partners from July 9th. Trump stated that letters will be sent to inform about the tariff rates. A trade deal with India is in its final stages.
Trump Tariff: US President Donald Trump plans to send letters to trading partners starting Friday, concerning tariff rates. These letters will inform various countries about the tariffs they will have to pay to the United States. This step is being taken under the tariff plan announced in April, which imposed tariffs of up to 10 percent on products from most partner countries.
Negotiations in Final Stages, Efforts to Avoid Tariffs
Donald Trump, in conversation with the media, said that the US is now moving towards a final decision on tariffs. He stated, "My intention is to send letters so that countries know how much tariff they will have to pay."
It's worth noting that the US is serious about imposing tariffs on countries that are not ready for trade agreements. However, countries with positive negotiations may get relief.
Tariff Announcement in April
The US announced a comprehensive tariff plan in April 2025. Under this plan, tariffs of up to 10 percent were imposed on products from most of the US's trading partners. This plan has been particularly challenging for countries that are already facing trade deficits with the US.
However, at that time, the US had extended the final deadline for tariffs to July 9, 2025, to give countries an opportunity to negotiate. Now that this deadline is approaching, the pressure on countries is increasing.
Agreements Reached with Britain and Vietnam
So far, the US has only reached formal agreements with two countries, Britain and Vietnam, regarding tariffs. Under these agreements, both countries have been given tariff exemptions on certain specific products.
In addition, the US and China have temporarily agreed to reduce the heavy tariffs imposed on each other's products. This step is considered a positive sign towards maintaining global trade balance.
Trade Agreement with India May Happen Soon
Amidst these developments, the possibility of a trade agreement between India and the US has also gained momentum. According to sources, officials from India and the US are holding final talks on several trade-related issues. This deal will be of great strategic and economic importance to both countries.
If this agreement is reached, India could also get partial or full relief from tariffs. This will give Indian exporters a more competitive advantage in the US market and could start a new chapter in trade between the two countries.
What Will Be the Effects of Tariff Implementation?
If a country fails to reach a trade agreement with the US, it may face heavy tariffs. This will:
- Increase the cost of exports from that country to the US.
- Make American companies hesitant to import goods from those countries.
- Increase pressure on the concerned country's economy.
- Potentially create imbalances in the global supply chain.
