US President Trump to send letters to countries specifying tariff rates; India hopeful for interim trade deal with US. | Photo Credit: REUTERS

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US President Donald Trump has said that his government will start sending letters to countries, which have not entered into trade deals with the US, starting Friday, specifying the tariff rates fixed for them as it was difficult to strike deals with all.

The tariffs would apply from August 1 and would range from 60 per cent or 70 per cent to 20-30 per cent, Trump said.

India worked hard to finalise its interim trade deal with the US before the deadline of Wednesday, when the pause period for the US reciprocal tariffs ends, with a focus on protecting its sensitivities, especially in agriculture, sources said.

“We’re probably going to be sending some letters out, starting probably tomorrow, maybe 10 a day to various countries saying what they’re going to pay to do business with the US,” Trump told reporters on Thursday before leaving for an event in Iowa.

The letters would be sent, about 10-12 a day, probably starting Friday, and by July 9 all the letters would get sent, he added.

Responding to a question on whether more trade deals were on the way, Trump said a couple of them were but he was more inclined to send letters specifying the tariffs countries have to pay. “We have a couple of other deals, but you know, my inclination is to send a letter out and say what tariffs they are going to be paying,” he said.

Indian negotiators were in Washington DC for over a week engaging with their American counterparts trying to narrow down on an interim deal and seal it as soon as possible. 

“The Indian team negotiated in good faith. But India has its sensitivities, especially in agriculture and dairy, and those can’t be compromised. The clock is ticking and all efforts are on for a positive outcome,” the source said.

On April 2, US President Donald Trump announced reciprocal tariffs on most countries with which US had a trade deficit. He then paused them for a 90-day period that expires on July 9. The tariff rates differed for different countries mostly depending on the deficit levels.

Trump declared a 26 per cent reciprocal tariff on Indian goods, of which a baseline tariff of 10 per cent was already imposed in April.

“If an interim trade deal, to be later absorbed into a full-fledged comprehensive bilateral trade agreement by Fall 2025, is struck by July 9, it could benefit both sides,” the source said.

On Wednesday, Trump announced an agreement with Vietnam imposing a 20 per cent tariffs on Vietnamese goods in the US, while American goods get duty-free entry into Vietnam. The tariffs on Vietnam are lower than the threatened reciprocal tariffs of 46 per cent.

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Published on July 4, 2025