Trump says US 'close' to making trade deal with India; tariff letters issued to 14 countries

US President Donald Trump on Monday said the United States is close to finalising a trade deal with India, even as his administration moved to impose new tariffs on a range of countries.

“Now, we've made a deal with the United Kingdom, we've made a deal with China….We're close to making a deal with India,” Trump told reporters ahead of a bilateral dinner with Israeli Prime Minister Benjamin Netanyahu at the White House.

“Others we met with and we don't think we're going to be able to make a deal, so we just send them a letter. If you want to play ball, this is what you have to pay.”

The remarks came as the administration sent out the first tranche of letters Monday notifying 14 countries of upcoming tariffs on their products entering the United States.

The letters, signed by Trump, were sent to Bangladesh, Bosnia and Herzegovina, Cambodia, Indonesia, Japan, Kazakhstan, Laos, Malaysia, Serbia, South Africa, South Korea, Thailand, and Tunisia.

“We're sending out letters to various countries telling them how much tariffs they have to pay,” Trump said, adding that certain nations were “ripping” the US by imposing tariffs at “levels that nobody's ever seen before,” with some charging as high as 200%.

According to administration officials, Japan and South Korea will each face a 25% tariff beginning August 1, citing persistent trade imbalances with the two key US allies in Asia.

Other reciprocal tariff rates announced include Malaysia (25%), Kazakhstan (25%), Tunisia (25%), South Africa (30%), Bosnia (30%), Laos (40%), and Myanmar (40%).

Trump said the letters sent Monday were not necessarily the final word in tariff talks.

“I would say, final, but if they call with a different offer and if I like it, we’ll do it,” he said.

In February, the US and India began negotiations for a bilateral trade agreement, aiming to conclude the first tranche of the deal by fall this year.

On April 2, the US imposed an additional 26% reciprocal tariff on Indian goods but suspended it for 90 days while negotiations continued. The 10% baseline tariff remains in place, and India is seeking a full exemption from the additional duty.

India is seeking a full exemption from the 26% duty, failure of which would see the tariffs come back into force.

In agriculture sector, the US is seeking duty concessions on products like dairy items, apples, tree nuts, and genetically modified crops.

However, being a politically sensitive sector, it will be difficult and challenging for India to provide any concessions in the agri sector.

India has not opened up the dairy sector for any of its trading partners in free trade pacts the country has signed so far.

“India has drawn its red lines… now the ball is in the US court,” PTI quoted sources as saying.