US delays tariffs to August 1 as trade negotiations ramp up

US delays tariffs to August 1 as trade negotiations ramp up

The United States has postponed its proposed country-specific tariffs to August 1, giving nations like India more time to reach trade agreements with Washington. Initially slated to take effect on July 9, the delay signals a push from the Trump administration to conclude negotiations with multiple trading partners.

Announcing the shift, US Commerce Secretary Howard Lutnick said on Sunday that President Donald Trump is “setting the rates and the deals right now.” Trump told reporters that he expects most countries to either send confirmation letters or finalize agreements by July 9. Notification letters detailing tariff hikes will begin going out this week, he added.

Trump emphasized the urgency of these notices, stating, “This is what you have to pay if you want to do business with the United States,” adding that negotiating separately with each country would be more time-consuming.

Back in April, Trump introduced a base tariff of 10% on most U.S. trading partners, with potential hikes up to 50% depending on compliance.

The U.S. has already finalized trade agreements with the United Kingdom and Vietnam, with more deals reportedly in progress. Treasury Secretary Scott Bessent said on CNN that letters would be sent to remaining countries warning that tariffs could revert to the higher April 2 rates unless progress is made.

India’s trade delegation, led by chief negotiator Rajesh Agrawal, recently concluded talks in Washington without resolving issues over agricultural and dairy trade.

In a controversial move, Trump also announced an extra 10% tariff on countries “aligned with the anti-American policies of BRICS,” escalating geopolitical tensions as trade negotiations continue.

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