Starting August 1, 2025, the United States will impose a 10% reciprocal tariff on imports from nearly 100 countries. Officials are describing this as a major reset of global trade policy. U.S. Treasury Secretary Scott Bessent confirmed the move, indicating that the baseline tariff would apply broadly—even to countries currently engaged in trade negotiations with Washington.
What’s the Detail?
Speaking to Bloomberg Television, Bessent said, “We’ll see how the President wants to treat those who are negotiating—whether he feels they are acting in good faith. I think we’re looking at about 100 countries that will face a minimum 10% reciprocal tariff, and we’ll go from there.”
Meanwhile, President Trump told reporters that he has signed letters to 12 countries outlining the new tariff terms under a ‘take it or leave it’ framework. These formal proposals are expected to be sent on Monday. While Trump did not name the countries, reports suggest the list includes India, Japan, and members of the European Union. According to the administration, the goal of the tariffs is to secure more favorable trade terms for U.S. exports. However, the sweeping scope—targeting nearly half the world’s nations—marks one of the most aggressive trade realignments in decades.
What Will Be the Impact on India?
India faces an immediate challenge. A temporary suspension of 26% U.S. tariffs on Indian goods is set to expire on July 9. If an interim trade agreement isn’t reached by then, Indian exports could be hit with higher tariffs starting August 1.
Negotiations have intensified in recent weeks. Indian negotiators returned from Washington after extended discussions, but no deal was reached. The main sticking point: U.S. pressure on India to open its agricultural and dairy markets to genetically modified imports. India, on the other hand, is pushing for greater access for its labor-intensive exports such as textiles, leather, and gems. So far, the U.S. has refused to offer tariff relief on steel to any country, including India.