US President Donald Trump on Sunday announced that the initial list of official tariff letters, including fresh reciprocal tariff rates will be dispatched to various nations from 12 pm ET (9:30 pm IST) on Monday. The decision was taken amid high-stakes trade talks with various nations, including India, as Washington demands altered trade terms under its new tariff regime. Making the announcement on his Truth Social site, Trump stated, "I am pleased to announce that the UNITED STATES TARIFF Letters, and/or Deals, with various Countries from around the World, will be delivered starting 12:00 P.M. (Eastern), Monday, July 7th. Thank you for your attention to this matter! DONALD J. TRUMP, President of The United States of America."

The letters should outline new bilateral tariff rates, with a baseline 10 per cent duty on most goods, rising as high as 70 per cent for nations that do not reach agreements prior to August 1. The tariff proposal, initially announced in April, was put on hold for 90 days in order to facilitate negotiations, now in their closing stages. The US President also threatened that countries joining BRICS the bloc comprising of Brazil, Russia, India, China, and South Africa, may be charged an extra 10 per cent tariff. The threat comes after BRICS leaders jointly criticised the US tariff policy as “illegal and arbitrary”, blaming it for disrupting global trade. “AAny Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!” Trump said.

India-US Mini Trade Deal Nears Finalization

At the same time, India and the United States are said to be in the final stages of agreeing to a highly anticipated mini-trade deal that will avoid the tariff increase immediately. The deal may be announced in the next 24 to 48 hours after the negotiators concluded the talks in Washington last week, CNBC-TV18 reported. The sources told CNBC-TV18 that the mini trade deal is an "early harvest agreement" that would enable India to export selected labor-intensive goods such as textiles, apparel, and leather products at reduced tariff rates under annual quotas. In exchange, India is supposed to slash import tariffs on certain US agricultural commodities like pecan nuts and blueberries. Commerce Minister Piyush Goyal has already asserted that India would not compromise on national interest, refusing to make concessions on critical items like wheat, rice, maize, dairy, and genetically modified crops.

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The reciprocal tariffs, which were announced in April, were originally set to begin on July 9 following a 90-day notice but were postponed until August 1 to allow time for final negotiations. US Treasury Secretary Scott Bessent says more than 100 letters have already been drafted reminding countries that there would be tariff increases unless agreements are completed on schedule. Thus far, only the United Kingdom and Vietnam have managed to secure agreements under the new regime. The UK was able to obtain exemptions for major sectors such as cars and aircraft engines, and Vietnam was able to get a substantial reduction in tariffs on its exports.

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The mini trade deal is an interim step to avoid a tariff standoff and set the stage for a full-fledged Bilateral Trade Agreement (BTA) between India and the United States. The BTA negotiations are likely to take off from July 9 and will cover larger issues of digital trade, e-commerce, investment protection and sensitive market access.