Trump to Send Letters as India Awaits US Response on Trade Deal
US Treasury Secretary Bessent said that the government will send letters to 100 small countries with whom the US doesn't have much trade to notify them that they will be facing higher tariff rates, which were set on April 2, 2025.
Chennai: US President Donald Trump would start sending letters to its trading partners with the new tariff rates or with announcement of trade deals from Monday noon EST. Having wound up the trade talks a few days ago, India is awaiting a response from the US side. Meanwhile, Trump also threatened to impose an additional 10 per cent tariff on countries aligning with BRICS.
As per reports, the US will send letters to its trading partners from Monday to pressurise them on conceding to its demands and enter trade deals before August 1. President Trump has already signed some of them.
"We are going to send letters out on Monday having to do with the trade deals... It could be as many as 15 or so. They will be going out on Monday and some will go out on Tuesday and Wednesday and we have made deals also. So, we are going to have a combination of letters and some deals have been made,” said Trump.
US Treasury Secretary Bessent said that the government will send letters to 100 small countries with whom the US doesn't have much trade to notify them that they will be facing higher tariff rates, which were set on April 2, 2025.
Trump has suggested the letters would include duty rates at the current 10 per cent baseline or as high as 70 per cent. However, Bessent clarified that the US would not impose 70 per cent tariff rates on major trading partners.
India too is expecting a response from the US after having concluded the talks a few days back. As far as the trade deal is concerned, the ball is now in the US' court.
“India has been resisting American demand for tariff cuts on dairy products and key food grains like rice and wheat as well as genetically modified products such as soybean meal and Distillers Dried Grains with Solubles (DDGS) for animal feed. However, India has offered tariff reductions and quotas for agri products like ethanol, almonds, walnuts, apples, raisins, avocados, olive oil, spirits, and wine,” said GTRI.
Meanwhile, Trump announced that the US would impose an additional 10 per cent tariff on “any country aligning themselves with the Anti-American policies of BRICS” with “no exceptions”. The BRICS countries, including India, which met in Brazil on Sunday had released a joint declaration voicing “serious concerns” about the “rise of unilateral tariff and non-tariff measures” in an apparent jibe at the Trump administration’s trade policy. However, experts do not attach much importance to Trump's threat.
