India Sends Trade Team to U.S. Amid BRICS Tariff Turmoil and Uncertainty Over Deal

 India Sends Trade Team to U.S. Amid BRICS Tariff Turmoil and Uncertainty Over Deal

An Indian trade delegation is set to travel to the United States once again in the coming days, aiming to get clarity on a number of recent and rather surprising policy signals from Washington — particularly a proposed 10% tariff on imports from BRICS nations. The visit will also focus on pushing forward discussions on a “mini” trade deal and a broader bilateral investment treaty.

Sources familiar with the matter say the newly floated tariff — which appears to target all BRICS countries — has raised serious concerns in New Delhi. The confusion stems from U.S. President Donald Trump’s recent remarks, where he bluntly stated that “any country that’s in BRICS is getting a 10% charge pretty soon.” This statement, delivered first on Sunday and repeated during a Cabinet meeting on Tuesday, has left many Indian officials wondering what this means for ongoing trade talks.

What’s particularly alarming is that this threat comes on top of formal letters sent by Washington to several countries, including Brazil, South Africa, and Indonesia, notifying them of steep import tariffs effective from August 1. These include a 50% tariff on Brazilian goods, 30% on South African imports, and 32% on goods from Indonesia. A similar agreement with China, reached in late June, will see a 30% tariff imposed on Chinese exports to the U.S.

This has triggered a lot of head-scratching in India. “There’s no clarity yet on whether the new 10% BRICS tariff is in addition to what was outlined in those letters or if it overlaps,” a senior Indian official told. “We need to understand exactly how this impacts India and where it leaves the trade deal currently being negotiated.”

Adding to the uncertainty is a sweeping new 50% tariff on all copper imports into the U.S., which also raises concerns for Indian exporters.

Another official confirmed that India is actively engaged with the U.S. through virtual channels and will soon follow up in person. “The team will seek more clarity on these new tariff moves and continue talks on both the mini deal and the full bilateral trade agreement,” the official said.

This will mark the third Indian delegation to the U.S. in recent months for trade negotiations, while American officials have made two trips to India during the same period.

Trade analysts say the latest announcements are not just disruptive — they call into question the reliability of any deal made with the current U.S. administration. “The unpredictability under Trump makes even signed agreements feel shaky,” said Ajay Srivastava, former Director-General of Foreign Trade and founder of the Global Trade Research Initiative. “His recent warnings suggest that aligning too closely with BRICS positions could come at a steep cost — even if you have a deal in hand.”

In short, Indian negotiators have their work cut out for them — not just in ironing out the details of a trade pact, but in understanding what kind of economic relationship Washington is now offering.

"India-U.S. Trade Talks Heat Up Ahead of Trump’s August 1 Tariff Ultimatum"

 "India-U.S. Trade Talks Heat Up Ahead of Trump’s August 1 Tariff Ultimatum"

India and the United States appear to be on the brink of finalizing a long-discussed “mini” trade deal, with officials from New Delhi saying an announcement could come “in a day or two.” While optimism is growing, Indian sources have made it clear that the country will only go forward if the final terms of the deal align with its economic and strategic interests.

The timing is particularly sensitive. U.S. President Donald Trump recently extended a tariff pause until August 1, providing a slightly wider window for talks to continue. The suspension relates to what are being called “Liberation Day tariffs,” first announced on April 2, which included a steep 26% tariff on imports from nearly all nations—including India at the time. The original pause on those tariffs was set to expire on July 8, but Trump’s extension has now given negotiators some breathing room.

However, Trump’s message is also firm: this is the final extension. “There will be no change. No extensions will be granted,” he stated in a post on Truth Social, making it clear that if agreements are not finalized by August 1, the tariffs will be enforced.

Significantly, India was not among the 14 countries that received a recent warning letter from Trump threatening higher tariffs if bilateral trade imbalances aren’t addressed. That list includes Japan, South Korea, South Africa, Bangladesh, and others. According to Indian officials, this is a sign that negotiations with the U.S. are progressing well.

A senior government official involved in the trade discussions noted that India has already submitted its final proposals and is now waiting for Washington’s response. “We’ve placed our cards on the table,” the official said. “The ball is now in their court.”

If the U.S. accepts India’s proposals as they stand, the agreement could be concluded by July 8 or shortly after. But if the specifics are not favorable to Indian interests, the country is prepared to continue negotiations up until the new August 1 deadline. The official emphasized, however, that India will not further revise its offer.

The main roadblocks to finalizing the deal remain unresolved: genetically modified (GM) crops and dairy imports. The U.S. has been pressing India to open its markets to GM animal feed products such as soybean meal and distillers dried grains with solubles (DDGS), a by-product of ethanol production. However, India has long maintained a cautious stance on GM products, both domestic and imported, due to health and environmental concerns.

Another contentious issue is dairy. The U.S. wants access to India’s massive dairy market, especially for cow’s milk, but India has resisted, citing cultural sensitivities and concerns over animal feed practices used in American dairy farming.

Despite these sticking points, there has been substantial engagement between the two sides. An Indian team led by Rajesh Agrawal, Special Secretary in the Ministry of Commerce and Industry, recently returned from a second round of discussions in the U.S. Likewise, American negotiators have visited India twice over the last few months.

While both governments are keeping the exact details under wraps, the increasing frequency and intensity of the talks indicate a strong mutual desire to conclude at least a limited agreement. A successful deal, even if only a “mini” version, would mark a significant moment in the evolving U.S.-India trade relationship.

In summary, while nothing is finalized yet, the momentum is unmistakable. With the clock ticking toward the August 1 deadline, all eyes are on Washington to see whether the U.S. will accept India’s final proposals—or whether the wait for a trade breakthrough will continue.