US President Donald Trump is set to take the final call on India-US trade deal. According to CNBC, India has already presented a final ‘decent offer’ from its side, which will be reviewed by the US President now. According to the report, India’s proposal covers goods trade worth around $150 billion to $200 billion between the two countries. Now, it’s up to US officials to decide whether they want to continue negotiations or move forward with a deal as it stands. India is not expected to offer any more concessions at this point.
Trump had earlier said that the United States is close to finalising a trade deal with India. This move is part of a larger effort to change global trade ties and use tariffs as a tool to increase US influence. During a private dinner with Israeli President Benjamin Netanyahu on Monday, Trump told reporters that the US has already reached trade agreements with countries like the United Kingdom and China. He added that India could be next. “As far as I’m concerned, we’re done with sending out letters to various countries telling them how much tariffs they have to pay. Some will maybe adjust a little bit, depending if they have a you know, cause,” Trump said.
Trump has delayed imposing higher tariffs on goods coming into the US from 14 countries, including Japan and South Korea. The development comes just as a 90-day pause on some of the toughest import taxes, put in place by the White House, was about to expire this week. Trump repeated his warning that a 25% tariff could still be placed on goods from Japan and South Korea. He also shared letters to leaders of several countries, saying new tariffs will take effect from August 1. The higher tariffs were supposed to start on July 9, but were earlier put on hold while US officials tried to make trade agreements.
Trump shared tariff letters via social media on Monday that were sent to leaders of the 14 countries. He explained his new tariff plans in them and said the rates could go up or down, depending on how each country’s relationship with the US develops. Most of the tariff amounts in the letters were similar to what Trump had mentioned in April, during what he called the “Liberation Day” announcement, when he threatened new taxes on goods from many countries. Although highest tariff rate of 40% has been imposed on Myanmar and the Lao People’s Democratic Republic.
Trump says the goal of these tariffs is to protect American companies from foreign competition and to support US factories and jobs. However, many economists believe these steps will make things more expensive for American buyers and reduce trade.
US Treasury Secretary Scott Bessent said on Sunday that the tariffs announced in April will be enforced starting August 1 for countries that haven’t finalized a deal with President Donald Trump’s administration. “President Trump’s going to be sending letters to some of our trading partners saying that if you don’t move things along, then on August 1, you will boomerang back to your April 2 tariff level,” Bessent said during an interview on CNN’s ‘State of the Union’. He explained that these countries will receive letters stating that if no agreement is reached by then, their tariff rates will return to what was set on April 2.
Bessent pushed back on claims that August 1 marks just another tariff deadline. However, he acknowledged that the new date could give countries extra time to work out better trade terms. “We are saying this is when it’s happening, if you want to speed things up, have at it, if you want to go back to the old rate that’s your choice,” Bessent added.
How did Wall Street react: Stock markets dropped from record highs and the US dollar rose after Trump started sharing his tariff letters. The US will begin charging tariffs on countries like Japan, South Korea, and South Africa from August, which led to a fall in their currencies. The S&P 500 index went down by around 1%, with big companies seeing the biggest losses. Tesla’s stock fell nearly 7% after Elon Musk said he had started a political party, causing investors to worry about the company’s future. US government bonds also dropped in value, especially the long-term ones. Emerging markets were affected too, after Trump said he might add more tariffs on countries that support the “Anti-American policies of BRICS.”
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According to multiple reports quoting official sources, a “mini trade deal” between India and the United States is likely to be announced on Tuesday night. The full deal is expected to be finalised after further negotiations between the two countries later this year.
CNBC Awaaz also cited people familiar with the matter to add that the announcement was likely to be made by 10 pm.
Trump has long promised a trade deal with India, but talks have stalled on disagreements over US tariffs on auto components, steel and agricultural goods.
India has signaled it is ready to slash its high tariff rates for the U.S. but has not conceded on Washington’s demands for opening up the agriculture and dairy sectors. New Delhi also has proposed retaliatory duties against the US at the World Trade Organization, saying Washington’s separate 25% tariff on automobiles and some auto parts would affect $2.89 billion of India’s exports.
“As per letters sent to various countries yesterday, in addition to letters that will be sent today, tomorrow, and for the next short period of time, TARIFFS WILL START BEING PAID ON AUGUST 1, 2025. There has been no change to this date, and there will be no change. In other words, all money will be due and payable starting AUGUST 1, 2025 – No extensions will be granted. Thank you for your attention to this matter!” he wrote on Truth Social.
Japan said its tariff negotiator Ryosei Akazawa and U.S. Treasury Secretary Scott Bessent agreed to “continue talks vigorously” in a phone call on Tuesday, after President Donald Trump announced 25% tariffs on Japan starting August 1.
Akazawa and Bessent had “frank and in-depth discussions” in the call that lasted about 30 minutes from 9 p.m.(1200 GMT), Japan’s Cabinet Secretariat said in a statement, adding Japan will continue to explore an agreement that benefits both nations.
Safe-haven gold prices slipped on Tuesday, hurt by some optimism over trade deal between U.S. and its trading partners, while a firmer U.S. dollar and rising Treasury yields added further pressure.
Spot gold eased 0.4% to $3,322.93 per ounce, as of 1325 GMT. U.S. gold futures fell 0.3% to $3,332.30.
The benchmark 10-year note yield hit a more than two-week high, making non-yielding gold less attractive, while dollar edged 0.2% higher.
Powerhouse Asian economies Japan and South Korea said on Tuesday they would try to negotiate with the US to soften the impact of sharply higher tariffs that President Donald Trump now plans to impose from the start of August.
Trump ramped up his trade war again on Monday, telling 14 nations that they would face tariffs ranging from 25% for countries including Japan and South Korea, to 40% for Laos and Myanmar.
However, with the start date pushed back to August 1, those countries were focusing on the new three-week window to press for an easier ride.
Japan wants concessions for its large automobile industry, top trade negotiator Ryosei Akazawa said on Tuesday.
Akazawa said he held a 40-minute phone call with U.S. Commerce Secretary Howard Lutnick in which the two agreed to actively continue negotiations. However, he said he would not sacrifice Japan’s agriculture sector – a powerful political lobby domestically – for the sake of an early deal.
South Korea said it planned to intensify trade talks over the coming weeks “to reach a mutually beneficial result.”
Futures tracking the S&P 500 and the Nasdaq inched higher on Tuesday as investors assessed U.S. President Donald Trump’s latest tariff salvo and pinned their hopes on fresh negotiations with key trading partners to stave off a full-blown trade war.
On Monday, Trump notified 14 nations, including Japan, South Korea, Laos and Myanmar that they would face duties ranging from 25% to 40%.
Wall Street reacted negatively to the news, with the Dow closing nearly 1% lower on Monday, while the S&P 500 and the Nasdaq closed down 0.8% and 0.9%, respectively.
However, the postponement of the tariff implementation to Aug. 1 has offered a negotiation window, an opportunity for economies to work out favorable terms to soften the blow of steep levies.
At 07:01 a.m. ET, Dow E-minis were down 36 points, or 0.08%, S&P 500 E-minis were up 7.5 points, or 0.12%, and Nasdaq 100 E-minis were up 58.25 points, or 0.25%.
Among the harshest penalties: Laos and Myanmar are each set to face 40 percent tariffs, followed closely by Cambodia and Thailand at 36 percent. Bangladesh and Serbia are in line for 35 percent duties, while other countries, including Indonesia, South Africa, and several Asian and Eastern European economies, will also face steep hikes ranging from 25 to 32 percent.
Read More: Trump Tariffs: These countries are the worst hit after release of presidential tariff letters
The Federation of Thai Industries estimated on Tuesday that damage to Thai exports could reach 800 billion to 900 billion baht ($24.5 billion to $27.6 billion) from the 36% US tariffs.
South African President Cyril Ramaphosa pushed back against U.S. President Donald Trump’s imposition of a 30% tariff, saying that it was based on an inaccurate understanding of the two countries’ trade and that negotiations with the U.S. would continue. Trump ramped up the trade war he started in April by telling 14 countries including South Africa on Monday that they face sharply higher “reciprocal” tariffs from August 1. South Africa has been trying to negotiate a trade deal with the U.S. since May, but it has yet to agree terms.
“South Africa maintains that the 30% reciprocal tariff is not an accurate representation of available trade data,” Ramaphosa said in a statement late on Monday.
He said South Africa’s interpretation was that its average tariff on imported goods was 7.6% and that 77% of U.S. goods face no tariffs in his country.
Ramaphosa said it was positive that Trump had said the 30% tariff could be modified depending on the outcome of trade talks, and he urged South African companies to seek new export markets in the meantime.
The Deputy Prime Minister of Cambodia thanked US President Donald Trump for reducing tariff rates on Tuesday.
“Reduction in US tariff from 49% to 36% a big success for Cambodia in the first negotiation phase. We’re prepared for more US talks to negotiate further tariff reduction,” the top official said.
Malaysia’s trade ministry on Tuesday said a 25% tariff rate on its exports to the United States was not on top of an existing base tariff of 10% imposed by Washington, clarifying earlier remarks by the country’s plantations and commodities minister Johari Abdul Ghani.
Citing Malaysia’s trade minister, Johari had said the 25% rate was in addition to the baseline tariff introduced after a 90-day pause by the United States on the implementation of a previous levy, pending negotiations.
“The current tariff is 10%. Effective 1 August, if we failed to conclude negotiations, we will be imposed with 25% only. NOT 25% + 10%,” the trade ministry told Reuters
The executive director of the International Trade Centre told reporters in Geneva that the tariffs would have an impact on the US economy in the long run. Pamela Coke-Hamilton also said that a perfect storm was brewing as trade becomes more unpredictable and aid shrinks.
“This move actually extends the period of uncertainty, undermining long-term investment and business contracts, and creating further uncertainty and instability,” she said.
Mini India-US trade deal to be announced at 10 pm
The pound rose on Tuesday, gaining against the likes of the yen after the U.S. announced 25% tariffs on imports from Japan and South Korea, as investors gravitated towards markets that are at less risk of being hit by hefty duties.
US President Donald Trump on Monday wrote to 14 countries, from major suppliers like Japan and South Korea to minor trade players, warning they face sharply higher tariffs from a new deadline of August 1 unless they strike fresh trade deals.
Sterling rose 0.3% to $1.3645, bringing gains for the year so far to 9.1% as it heads for its strongest yearly performance against the dollar since 2017.
Against the yen the pound was up 0.3% at nearly 199.14 yen, around its highest since last November. The Korean won rose by 0.35% to 1,863 to the pound, recovering from the previous day’s selloff.
Britain is the only major economy so far with a US trade deal in the bag, albeit limited in scope, which means the focus for investors is squarely on the UK’s economic and fiscal backdrop.
(via Reuters)
The Chinese Foreign Ministry on Tuesday said that “there are no winners in tariff war”. On US Treasury Secretary to meet Chinese officials in coming weeks, the Ministry said that they have referred inquiry to relevant authorities, reported MKTNews.
According to Chris Beauchamp, chief market analyst at IG, US tariffs no longer seem to surprise the markets, reported MKTNews. Recent tariff announcements haven’t caused much of a reaction, which shows that investors may be getting used to them—something that could become risky if it leads to overconfidence. However, Trump’s openness to keep talking about trade has helped ease some of the worries caused by the tariff threats. Beauchamp said it seems like the administration isn’t fully committed to pushing the tariffs aggressively. While the situation might lead to more trade talks, the markets are mostly focused on what happens with South Korea and Japan.
South Korean stocks saw their biggest one-day jump in two weeks on Tuesday after US President Donald Trump extended a pause on new tariffs. This raised hopes for a possible trade deal. The main stock index, KOSPI, ended the day 1.81% higher, gaining 55.48 points to close at 3,114.95. This was the biggest daily percentage increase since June 24.
Southeast Asia’s largest economies moved on Tuesday to ramp up trade talks with the United States after facing steep new tariffs, even after making last-minute offers to increase imports and lower duties on American goods, reported Reuters. The region, which depends heavily on exports and manufacturing, has been among the hardest hit by President Donald Trump’s broad tariff measures. The combined economies of these nations are worth over $3.8 trillion, with some benefiting in recent years from global supply chains shifting away from China.
US President Donald Trump is expected to make the final decision on the India-US trade deal. As per a report by CNBC, India has already submitted what it considers a fair and final offer. The proposal will now be reviewed by the US President. India’s offer covers goods trade valued between $150 billion and $200 billion between the two nations. It is now up to US officials to decide whether they want to keep negotiating or accept the deal in its current form. India is unlikely to make any additional concessions at this stage.
Commenting on policy, South Korea’s presidential advisor has said that national interests are more important than swift consultations with US. Trump has slapped S Korea with 25% tariff on Monday. The tariffs will come into effect on Aug 1.
The Reserve Bank of Australia said that although it’s still unclear how far the US tariffs will go or how other countries will respond, financial markets have recovered. This is because investors believe the worst-case scenarios are not likely to happen.
Indian stock markets remained mostly unchanged after US President Donald Trump announced new tariffs on several countries but left room for further trade talks. The BSE Sensex moved up and down slightly and was down just 0.01% at 83,431. The NSE index also showed a similar small drop, closing at 25,463.
The highest tariffs of 40% were levied on Myanmar and Laos. The second-highest tariffs of 36% were levied on Thailand and Cambodia, followed by 35% tariffs on Republic of Serbia and Bangladesh.
Trump has been sharing letters on his social media platform, Truth Social, since yesterday. These letters are meant to inform other countries about the new tariff rates the US will apply starting August 1. Before posting the letters, Trump said that any country supporting the “anti-American policies of BRICS” would face an extra 10% tariff. He also warned that there would be no exceptions to this rule.
Click here to read full country-wise list of Trump Tariffs
Indonesia has said that it still has room for tariff negotiation with the US. A top negotiator will be meeting US trade representatives in Washington soon, MKTNews reported citing an official.
In the coming weeks, traders will keep a close eye on what Federal Reserve officials say about the latest tariff news, a Bloomberg report said. Fed Chair Jerome Powell has already suggested that he doesn’t plan to lower interest rates this month. Because of this, traders want to see if the new tariffs will lead other Fed members to speak out against market expectations for a possible rate cut in September.
Agriculture has been a key part of many of the US’ trade talks with Asian countries. Ahead of the long holiday weekend, traders were hoping Trump would announce a trade deal with China, the world’s biggest buyer of farm goods. Instead, the US revealed new tariff rates on major grain buyers like Japan and South Korea. As a result, corn prices fell by up to 4.2% on Monday. Soybean prices dropped 3%, and wheat was down 2.7%, reported Bloomberg.
Trump has said that putting tariffs in place will help protect American companies from foreign competition and will also support local factories and create more jobs in the US. However, many economists believe that these tariffs will lead to higher prices for American consumers and hurt international trade. On Monday, the three major stock market indexes in the US went down, and Toyota’s shares traded in the US dropped by 4%.
Trump has said that the US is nearing a trade agreement with India. He mentioned that deals have already been made with the United Kingdom and China, and India could be next. For countries where a deal seems unlikely, he said the US is moving ahead by sending official letters explaining the tariffs they will face if they want to continue trading with America. These comments came as the Trump administration began sending out the first round of letters on Monday. The letters outlined the new tariffs the US plans to apply to goods coming in from several countries.
