Amid Trade Stalemate with India, Trump Signs Tariff Letters for 12 Nations

Amid Trade Stalemate with India, Trump Signs Tariff Letters for 12 Nations

Amid growing uncertainty over the possibility of an interim trade agreement between India and the United States before the July 9 deadline, U.S. President Donald Trump announced that he has signed letters notifying 12 countries of upcoming reciprocal tariffs. These letters are set to be dispatched on Monday, with the tariffs scheduled to take effect on August 1. This timeline allows additional space for negotiations with countries like India, which have yet to finalize a trade deal with Washington.

A senior Indian official revealed that agriculture remains a major sticking point in the talks. India has taken a firm stance on protecting its agricultural sector, although it has expressed readiness to reduce import duties on a broader range of products. Historically, India has been cautious in trade agreements involving agriculture, largely to safeguard small-scale farmers.

India's negotiating team, led by Special Secretary Rajesh Aggarwal, recently returned after a week of discussions in the U.S. According to officials, the current deal under discussion is limited to trade in goods, excluding services and labor-related issues.

India is pushing for better market access for its textiles, leather goods, and footwear. In contrast, the U.S. is pressuring India to open its agricultural and dairy sectors—especially contentious given the prevalence of small farms in India and widespread opposition to genetically modified (GM) crops.

Only one GM crop—Bt cotton—is currently approved for cultivation in India. No GM food crops are commercially grown, though some experimental trials continue. Imports of GM oils such as soybean and canola are allowed, but the regulatory environment remains cautious.

Experts have raised concerns about the safety and environmental risks of GM crops. A 2013 scientific report highlighted that many studies claiming GM food safety were industry-funded, with a lack of independent, long-term research. Environmental impacts such as pest resistance, harm to non-target species, and the emergence of "superweeds" due to herbicide overuse have been documented in international studies.

A Delhi-based think tank warned that introducing GM products, even as imports like animal feed, could jeopardize India's agricultural exports to markets like the European Union, where GM content is tightly regulated and widely opposed by consumers. India's lack of infrastructure to segregate GM and non-GM supply chains raises the risk of contamination, which could lead to rejected shipments and damage to India's image as a GM-free exporter, particularly in sectors like rice, honey, spices, and organic produce.