US, India Near Agreement to Lower Reciprocal Tariffs

The United States and India are nearing a trade agreement aimed at lowering tariffs and preventing a sharp increase in reciprocal tariffs scheduled to rise from 10% to 27% after a 90-day pause expires on July 9. Treasury Secretary Scott Bessent highlighted that negotiations with India and other countries are making significant progress, with trade officials impressed by the unprecedented offers being made to reduce tariffs and non-tariff barriers. However, disagreements remain on issues such as import duties on auto components, steel, and farm goods. President Trump's administration has warned that countries not negotiating in good faith could face a return to higher tariffs imposed earlier in April, with rates potentially jumping back to between 11% and 50%. Some countries, like Canada, have made concessions to avoid tariff hikes, reflecting the administration's emphasis on cooperation. Bessent anticipates a flurry of trade deals being finalized before the July 9 deadline, although extensions or further negotiations may occur depending on countries' willingness to reach agreements.