Indian Officials to Visit US Again to Seek Clarity Over New Trade Tariffs
New Delhi: An Indian team is soon going to visit the United States again to continue the ongoing trade negotiations and seek clarity on the new announcements made by the US President Donald Trump, including a proposed 10% tariff on imports from BRICS countries.
“Our discussions will continue to focus on the interim deal and the bilateral trade agreement,” a government official was quoted as saying to Business Today.
New Delhi’s trade delegation, led by chief negotiator Rajesh Agrawal, had returned to the capital just last week after noting progress on completing a round of discussions from June 26 to July 2 in Washington on an interim trade agreement.
However, according to the report, further negotiations are needed due to unresolved issues in the agriculture and automotive sectors.
The discussions had coincided with the July 9 expiry of the 90-day pause on reciprocal tariffs imposed by the Trump administration. However, on Sunday (July 6), the US president extended the deadline to August 1.
Tariff letters
Trump’s announcement, however, came with a warning for BRICS countries as he sent letters to several countries stating that from August 1, they will be subject to new reciprocal tariff rates “designed to make the terms of our bilateral trade relationships more reciprocal over time and to address the national emergency caused by the massive U.S. goods trade deficit”.
The July 8 letter was sent to 14 countries with tariff rates as follows: 25% on Japan, South Korea, Tunisia, Malaysia and Kazakhstan; 30% on South Africa, Bosnia and Herzegovina; 32% on Indonesia; 35% on Bangladesh and Serbia; 36% on Thailand and Cambodia; and 40% on Myanmar and Laos.
Later on Thursday (July 10), Trump issued tariff letters to eight more countries:20% on Philippines; 25% on Brunei and Moldova; 30% on Algeria, Libya, Iraq and Sri Lanka; and 50% on Brazil.
Apart from these, Trump also announced a 50% tariff on all copper imports coming into the US.
As the BRICS nations voiced “serious concerns” about the unilateral tariff hike and non-tariff measures, Trump doubled down during a cabinet briefing on Tuesday (July 9), with a warning for India too.
“Anybody that is in BRICS is getting a 10 per cent charge. If they (India), they’re gonna have to pay a 10 per cent tariff,” he said, responding to a question from reporters about India and the statement issued by BRICS nations.
However, India was not on the list of countries that got the letter for revised tariff rates.
A government official told The Hindu, “We are engaged with the U.S. team virtually, and an Indian team will be heading to the U.S. soon.”
“Along with clarity on this, negotiations will continue on the mini deal as well as the overall Bilateral Trade Agreement (BTA),” the official said.
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