Watch the 'Masala' Pinch of a Trade Deal with America

As time ticks away for a pact on trade, India should resist getting caught in Trump's tariff trap

- AJAY SRIVASTAVA & R.V. ANURADHA

World trade has turned into a reality show, with Trump pulling the strings and expecting countries to follow his lead. On July 7, 2025, US President Donald Trump escalated his trade offensive with a flurry of moves on his Truth Social account. He posted tariff notices issued to 14 countries—including Japan, South Korea, Malaysia, Thailand, and South Africa—announcing higher duties of 25% to 40% from August 1. This was followed by a unilateral claim that a deal with India was near and an executive order extending the deadline for all countries to August 1. Until then, the temporary 10% tariff—first imposed on April 2 as part of Trump's 'Liberation Day' measures—will remain in effect.

If an Indian deal comes through before August 1, it will only be the third after his two in-principle deals with the UK and Vietnam, and a temporary truce with China. This will be a paltry record, given the fanfare of deals with most countries worldwide that Trump had promised would be concluded by July 9.

India has reportedly given the US the best it can offer, and the ball was in Trump's court on the eve of that date. Areas of extreme Indian sensitivity—dairy and agriculture, including GM crops—are reportedly not part of the deal. India exports over $86 billion worth of goods to the US, and our key interest is to preserve and increase as much of that market as possible, without compromising the country's interests.