Trump’s Tariff Deadline Delay To August 1 Spices Up Global Trade Drama: What’s Cooking For India’s Economy?

In what seems to be an era of unilateral tariff imposition by the U.S after Trump was declared the 47th U.S President, the deadline to implement higher rate of tariffs announced first on Liberation Day yet again extended by three weeks to August 1, 2025, as the United States comes close to finalising several trade agreements in the coming days 

While Trump and top office holders had mentioned August 1 earlier, however, it was unclear that all tariffs would increase then.  

Offering clarity over the looming tariff threat, Commerce Secretary Howard Lutnick told reporters the higher tariffs would take effect on August 1, meanwhile, Trump was "setting the rates and the deals right now."

On Liberation Day in April, Trump had announced a 10 per cent base tariff rate on most countries and additional duties ranging up to 50 per cent, however, he later delayed the effective date for all but 10 per cent until July 9.

The fresh date now offers countries a three-week reprieve.

US Treasury Secretary Scott Bessent reportedly on Sunday said that several big announcements of trade agreements could come in the next days, while mentioning that the European Union (EU) had made good progress in its talks.

He said Trump would also send out letters to 100 smaller countries with whom the US doesn't have much trade, notifying them that they would face higher tariff rates first set on April 2 and then suspended until July 9.

Also Read: ‘35% Tax In India, No Safety Net’ Debate Goes Viral On X

"There are deadlines, and there are things that are close, and so maybe things will push back past the deadline," Hassett said, while adding that Trump would decide if that could happen.

Stephen Miran, chairman of the White House Council of Economic Advisers, reportedly said that countries needed to make concessions to get lower tariff rates.

"I hear good things about the talks with India," Miran said. "And so I would expect that a number of countries that are in the process of making those concessions... might see their date rolled."

Trump has repeatedly said India is close to signing a deal and expressed hope that an agreement could be reached with the European Union, while casting doubt on a deal with Japan.

India and the United States are likely to make a final decision on a mini trade deal in the next 24 to 48 hours, according to media reports, while expectations of average tariffs on Indian goods shipped to the US to be 10 per cent stay afloat, it said.

Meanwhile, Thailand seems interested in avoiding a 36 per cent tariff, is now offering greater market access for US farm and industrial goods and more purchases of US energy and Boeing BA.N jets, Finance Minister Pichai Chunhavajira told Bloomberg News on Sunday.

On the other hand, Hassett reportedly told that framework agreements already reached with Britain and Vietnam offered guidelines for other countries seeking trade deals.

Further, mentioned that Trump's pressure was prompting countries to move production to the United States.