Donald Trump, recently re-elected as President of the United States, has failed to deliver on his promise to implement key aspects of his administration’s 100-day agenda. Among the most contentious moves was his announcement of sweeping tariffs on almost every country across the globe. While claiming to have reached trade agreements with 200 countries, Trump simultaneously froze the implementation of these tariffs until July 9, allowing time for further negotiations.
However, by the July 9 deadline, Trump had only managed to finalize trade deals with three countries: the United Kingdom, China, and Vietnam. Even among these, only Vietnam has agreed to a comprehensive deal, while the UK and China have so far committed to partial agreements.
India is now seen as the next major country expected to sign a trade deal with the US. However, rather than a comprehensive agreement, negotiations are currently focused on a provisional arrangement, often referred to as a ‘mini trade deal’. Yet, no final consensus has been reached, with several key issues remaining unresolved. One of the major sticking points is the US push to access India’s agricultural market by securing low-duty entry for American products. While Trump has claimed that India has already reduced tariffs on several US agricultural goods, there has been no official response from the Indian government or Prime Minister Narendra Modi.
India has remained firm on protecting its domestic interests, especially in sensitive sectors like agriculture, and has not yielded to many of the demands put forward by the US. As a result, Washington has been unable to finalise a trade deal with New Delhi, despite ongoing negotiations and mounting pressure. India stands out as the only major country posing a tough challenge to the US administration, while others like China and the UK have already conceded to partial deals. Highlighting India’s resolute stance, US President Donald Trump had earlier acknowledged Prime Minister Narendra Modi’s negotiating skills during a joint press conference on Modi’s US visit this year. “He is a much tougher negotiator than me and he is a much better negotiator than me. There is not even a contest,” Trump had remarked, underlining India’s firm position in ongoing trade talks.
#WATCH | Washington, DC: US President Donald Trump says, "He (PM Narendra Modi) is a much tougher negotiator than me and he is a much better negotiator than me. There is not even a contest."
(Video: ANI/DD) pic.twitter.com/V8EzU0FfE9
— ANI (@ANI) February 13, 2025
Meanwhile, US-EU trade talks have also hit a stalemate. The European Union is demanding that the US remove steep tariffs, 50% on steel and aluminum and 25% on vehicles. The EU has warned that it will retaliate with its own set of tariffs if Washington refuses to reconsider.
On July 10, Trump escalated the situation by sending official letters announcing new tariffs ranging from 20% to 40% on imports from 22 countries, including Japan, South Korea, Bangladesh, South Africa, Sri Lanka, and the Philippines. These tariffs are scheduled to come into effect from August 1. Trump has made it clear that countries which have not signed a deal with the US by that date will receive no tariff relief thereafter.
In an unexpected twist for the US, many countries are now preparing to strike back. Brazil and South Africa have already signaled retaliatory measures, while the European Union remains firm in its position. India too has made it clear that it will not compromise on matters that could harm key sectors of its domestic economy, especially agriculture.
As the August 1 deadline approaches, the global trade landscape faces growing uncertainty, with many nations gearing up for a potential tariff war, a confrontation that could reshape international politics and commerce in the months to come.
