Trump Signals India-US Trade Deal Amid Tariff Blitz
U.S. President Donald Trump has announced that the United States is “close to making a deal” with India on trade, a statement that comes amid a sweeping tariff escalation targeting 14 other nations. The announcement, made on July 8, 2025, offered India a rare reprieve from the latest round of tariff hikes, reinforcing optimism over the direction of bilateral negotiations.
“We are close to making a deal with India. We’ve made a deal with the United Kingdom. We’ve made a deal with China,” Trump said, adding that countries unwilling to agree on trade terms were simply sent tariff letters. “Others we met with, and we don’t think we’re going to be able to make a deal, so we just send them a letter,” he said. The president indicated that the August 1 deadline for tariffs was “firm, but not 100 percent firm,” suggesting room for flexibility.
India trade
India’s exclusion from the new tariff list was viewed as a signal of goodwill and progress in trade talks. The Indian rupee saw marginal strengthening as the markets responded positively to the development. Discussions between the two sides have reportedly narrowed to a few sticking points, with the U.S. seeking broader market access in sectors like dairy, medical devices, autos, energy, and nuts. India, in turn, is negotiating for relief on tariffs affecting steel, auto components, garments, and pharmaceuticals.
US tariffs
The new tariff measures will impose duties ranging from 25% to 40% on imports from nations including Japan, South Korea, Indonesia, Bangladesh, Cambodia, and several others. These are part of a larger U.S. strategy to recalibrate trade balances and push for faster bilateral agreements. Trump also warned countries aligning with BRICS that a further 10% tariff could apply if they pursued what he called “anti-American policies.”
Deal close
The president reiterated that this wave of tariff notifications was not just about penalties, but a form of accelerated negotiation leverage. The goal is to finalize multiple interim trade agreements before the August 1 implementation date. The U.S. had previously paused tariffs in June to allow negotiations, and this letter campaign signals the end of that grace period for most.
Financial markets globally had mixed reactions. While U.S. indices showed some signs of caution, Asian markets appeared largely resilient. Indian currency futures suggested stable demand with the rupee trading near ₹85.75 per dollar in forward contracts.
As the clock ticks toward the August 1 deadline, all eyes are now on whether India and the U.S. can clinch a breakthrough deal, potentially reshaping the dynamics of trade in the Indo-Pacific. For now, Trump’s declaration—and India’s absence from the tariff list—offers a rare diplomatic opening amid rising global protectionism.
