India-US mini trade deal likely to be announced by 10 pm today

The 10% baseline tariffs earlier announced by US will however continue after the trade deal, but labour intensive sectors like textile, garments and leather products may see reduced tariff rates as part of the deal, CNBC Awaaz reported.

The much anticipated mini trade deal between India and US will likely be announced today (July 8) by 10 pm, CNBC Awaaz reported citing people familiar with the matter.  The two countries will announce today that they have agreed to the deal, while the details regarding the same may be released later, the news channel reported.

The 10 percent baseline tariffs earlier announced by US will however continue after the trade deal, but labour intensive sectors like textile, garments and leather products may see reduced tariff rates as part of the deal, the channel said.

The mini trade deal will likely see duties on certain US industrial goods drop to zero. Further, strong action against Chinese items may also be prompted by the deal, the news channel added.

US President Donald Trump had introduced a slew of reciprocal tariffs in April. He later announced a 90-day pause to the tariffs, allowing time to nations to arrive at trade deals with US.

Trump on July 7 issued letters with new tariff rates to around 14 countries. The new import tariff rates will be applicable from August 1. Notably, the US President is expected to issue more such letters this month. This move was said to be aimed at pushing nations to arrive at trade deals with US.

Indian Commerce Minister Piyush Goyal meanwhile said that India will not be rushed into any agreement based on external timelines. “India does not enter into any trade agreement based on deadlines. We will sign a deal with the US only when it is fully finalised, properly concluded, and in the national interest,” Goyal told reporters.

India and US have been negotiating a trade deal, with contentions arising over tariff rates on certain items. US President Donald Trump on July 7 said a trade deal with India is close as he announced tariffs for 14 other countries, most of them in Asia.

“We are close to making a deal with India. We’ve made a deal with the United Kingdom. We’ve made a deal with China. 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. We’re 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 cause, we’re not going to be unfair about it,” he said.