Waiting for a deal

The trade outlook remains uncertain

- 

Even with the July 9 deadline just a few days away, it is unclear whether India and the United States (US) will be able to reach a mutually beneficial trade deal within the given timeframe. US President Donald Trump last week said that he had signed letters for about 12 countries with tariff details, which would be sent on Monday. Mr Trump has also said that tariffs could be much higher—up to 70 per cent—and would be effective from August 1. This could also mean that the US is keeping the door open for negotiation even after the 90-day pause on the so-called reciprocal tariffs ends.

In a way, this also reflects the complexity of the situation. The US has not been able to reach trade deals with many countries. Unless the pause is extended, the US administration's failure to reach agreements even with major trading partners will significantly increase uncertainty in the global economy.