D-Day Looms for US Reciprocal Tariffs
July 07, 25
(IDEX Online) - D-Day is looming for the US to reimpose the reciprocal tariffs that prompted three months of turmoil for the diamond industry.
The deadline for nations to negotiate an interim trade deal that avoids tariffs is 12.01am EST on Wednesday 9 July. If no deal is reached, the tariffs will take effect from 1 August.
So far India - facing a 27 per cent tariff on all exports to the US - has not managed to negotiate such a deal, nor has the EU.
Talks between India and the US, aimed at reaching a compromise agreement, are expected to continue until the last minute.
Only the UK and Vietnam have managed to do so, ahead of the 9 July deadline.
Meanwhile letters outlining the new US tariff levels for 12 countries (not named) had been signed and were being sent today (Monday).
An additional 100 nations could be notified in the coming days, especially those with smaller trade volumes.
The US administration has emphasized that the new tariffs are "take it or leave it" offers, with limited scope for negotiation once letters are sent.
Diamond manufacturing in Surat has been severely impacted since Trump announced the reciprocal tariffs on 2 April. He then introduced a 90-day pause that lapses on Wednesday.
The baseline tariff of 10 per cent for most countries remains in force.
Video grab, courtesy White House, shows President Trump announcing reciprocal tariffs in April.