‘We are close to making deal with India’: Trump after issuing tariff letters to 14 countries
US President Donald Trump said on July 7, 2025, that the United States is “close to making a deal with India” as part of his broader strategy to shrink the US trade deficit and exert pressure through targeted tariffs. The statement came during a private dinner with Israeli PM Benjamin Netanyahu, coinciding with the release of tariff notification letters to fourteen countries, set to take effect from August 1.
Trump confirmed that trade agreements have already been secured with the UK and China, and that India is “very close” to finalizing its own deal. He mentioned that nations unlikely to meet US terms would receive official tariff notices, while offering some flexibility for countries with valid concerns, saying “we’re not going to be unfair about it” .
U.S. Commerce Secretary Karoline Leavitt echoed Trump’s remarks, noting that extending the tariff deadline to August 1 “is in the best interest of the country” and gives partners time to negotiate .
The letters, shared on Trump’s Truth Social platform, inform countries about proposed tariff rates ranging from 25% to 40%. South Korea and Japan face 25% tariffs; Myanmar and Laos are assigned 40%; South Africa 30%; Indonesia 32%; Bangladesh and Serbia 35%; Cambodia and Thailand reach 36% .
Trump has also issued a warning of an additional 10% tariff on BRICS-aligned nations—India among them—if they pursue what he calls “anti‑American” policies .
The Trump administration originally introduced a baseline 10% across-the-board tariff on April 2 (“Liberation Day”), along with higher reciprocal levies on roughly 60 nations . The July 9 deadline for enforcement was extended to August 1, allowing for ongoing deal-closing discussions .
Why it matters for India
● Trade context: India and the US have been in intensive talks to double bilateral trade to $500 billion by 2030—a goal emphasized during PM Modi’s visit to Washington in February 2025 .
● Key sticking points: India has resisted US demands to open its agricultural market, especially concerning GM crops and dairy—Ahead of July 9, discussions focused on reciprocal tariff concessions on goods and protecting farmer interests .
● Current outlook: Negotiators are reportedly concentrating on a narrower goods-only interim deal by July 9, while deferring tougher issues—such as agriculture and services—to later talks.
Broader global reaction
● Markets: Financial markets responded to Trump’s tariff announcements with caution: the S&P 500 dipped near 0.8% amid growing trade risk concerns .
● Business view: The National Foreign Trade Council, representing US interests, warns that tariff unpredictability could hamper global supply chains and erode allies’ trust .
● Other nations: While the UK, China, and Vietnam are reported to have reached at least preliminary agreements, negotiations continue with the EU, Japan, South Korea, and India .
What comes next
With the August 1 deadline looming, countries have until July 9 to negotiate alternative deals or face tariff imposition. Treasury Secretary Scott Bessent warned that smaller nations will receive letters without negotiations, as the administration seeks to maintain momentum .
For India, a goods-only interim pact appears likely before July 9, potentially laying groundwork for broader future agreements. Meanwhile, any deal’s scope, especially in sensitive areas like agriculture and services, remains to be seen.
