Indian imports into the United States could be subject to tariffs of 20% or more if the two nations don’t forge a trade deal by Aug. 1—three days from now.
Despite reports of progress in talks between India and the U.S., the countries have yet to announce a new deal—even as the European Union, the United Kingdom, Japan, Indonesia, and Vietnam all say they’ve reached new agreements with the U.S.
“We continue to speak with our Indian counterparts. We’ve always had very constructive discussions with them,” U.S. trade representative Jamieson Greer told CNBC on Monday. “But I think we need some more negotiations.”
President Trump told reporters this week that any country that doesn’t set a new trade framework could face 15% to 20% levies on its imports to the U.S.—a significant increase from the current global tariff level of 10%. It’s also possible the White House may impose the 26% “reciprocal tariff” on India it originally announced on April 2.
Trump has also threatened to impose an extra 10% tariff on members of BRICS, the group of developing nations that includes India, because of what he calls BRICS’ “anti-American” policies.
Reuters recently reported that Indian officials fear tariffs ranging from 20% to 25% could begin on Friday. While the officials expect those levels will just be temporary, they said trade talks aren’t slated to resume until mid-August.
If a deal is struck, the jewelry industry might be spared. According to the Economic Times, India has asked for tariff exemptions for gems and jewelry as part of any new trade deal.
But no one knows if that will happen. “The status of the [U.S.–India] negotiations is murky,” the New York Times wrote today, “and the unpredictable role that Mr. Trump has played in other deals makes a possible resolution of the U.S.–India talks impossible to map.”
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