• Source:JND
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India breathed a collective sigh of relief this week after the Trump administration clarified that it does not plan to immediately impose the 10 per cent tariff initially threatened against member states of the BRICS developing-nations bloc. The proposed levy, announced on July 6 via former President Trump’s Truth Social platform, had rattled New Delhi as it scrambled to finalise trade arrangements before a looming deadline.

Earlier on Sunday, Trump warned that “any country aligning itself with the anti‑American policies of BRICS will be charged an additional 10 per cent tariff,” insisting there would be “no exceptions”. The stark ultimatum prompted swift denials from BRICS members, including India and Indonesia, that they harboured any anti‑US agenda.

A source familiar with the administration’s internal deliberations told Reuters on Monday that the tariff would be conditional, not automatic. “A line is being drawn,” the source said on the condition of anonymity. “If policy decisions are made that are anti‑American, then the tariff will be charged.” Otherwise, no new duties would be levied immediately.

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Last-Minute Trade Talks

The clarification came just as India and other BRICS economies were negotiating last‑minute deals with US trade officials to avert the tariff. Countries faced an initial July 9 deadline for closing agreements that could stave off the new 10 per cent levy; the administration has now delayed that deadline to August 1, according to White House Press Secretary Karoline Leavitt.

Leavitt confirmed that “the President will sign an executive order today delaying the July 9 deadline to August 1.” She added that letters outlining new reciprocal tariffs had already gone out to Japan and South Korea, both slated for a 25 per cent duty, and that “approximately 12 other countries” would receive similar notifications.

For India, the shift from unconditional threats to case‑by‑case enforcement provides critical breathing room. New Delhi has long sought to diversify its export markets and deepen economic ties with Washington. The softened stance allows Indian exporters additional time to negotiate sector‑specific carve‑outs and explore mechanisms, such as enhanced market access or investment pledges, to demonstrate their alignment with US interests.

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Indian trade officials, who had viewed the original tariff threat as both an economic and geopolitical affront, welcomed the clarification. “We are encouraged that the US recognises our constructive engagement,” one senior diplomat said, speaking on condition of anonymity. “This conditional approach acknowledges India’s commitment to strengthening bilateral trade without resorting to punitive measures.”

While Japan, South Korea, Malaysia, Kazakhstan, South Africa, Laos, and Myanmar brace for announced tariffs ranging from 25 per cent to 40 per cent, India’s provisional exemption underscores its unique strategic partnership with the United States.