Trump Claims Progress In India Trade Talks, Warns Of More Tariffs As August 1 Deadline Nears

Key Highlights:

- Trump says trade deal with India is nearly done, despite missed July 9 deadline

- India refuses US demands on dairy, a major sticking point

- Trump threatens tariffs and sanctions ahead of August 1

US President Donald Trump has said that the United States is close to gaining better access to Indian markets, claiming that his tariff policies have helped push trade talks forward. He made these remarks while announcing a separate trade agreement with Indonesia, under which the US will get full access to Indonesia's markets with zero tariffs. In return, Indonesia will have to pay 19 percent tariffs. Trump said this model is similar to what the US is trying to do with India, where discussions are ongoing.

US Considers Interim Trade Deal With India, Tariffs May Drop Below 20%

Talks between the US and India had made some progress but hit a roadblock as India refused to meet certain American demands, especially in the agriculture sector. India did not agree to open its dairy market, which supports more than 80 million people, many of whom are small farmers. The missed July 9 deadline for the deal disappointed Washington, but Trump remains hopeful, saying an agreement is nearly complete with only a few details left.

India’s trade team, led by negotiator Rajesh Agrawal, is currently in Washington to continue talks. Meanwhile, the Trump administration has already sent formal letters about new tariffs to 14 countries, including Brazil and Canada, as part of its tough stance ahead of the August 1 deadline. India is one of the few nations still negotiating.

India, EU To Hold Next Round Of Free Trade Agreement Talks In September

Trump also issued fresh warnings, saying that BRICS countries—including India—will face 10 percent tariffs soon. He claims the BRICS alliance was formed to weaken the US dollar. He went further, saying that Russia could face 100 percent tariffs, and any country continuing to trade with Russia might face heavy secondary sanctions. India, a top buyer of Russian fossil fuels, could be affected.

Although no official statement has come from Indonesia about its agreement with the US, Trump stressed that the US now has better trade terms thanks to his aggressive tariff policies.