The report highlighted that the continued talks have as soon as once more hit a well-recognized impasse, with each side exhibiting restricted progress. A significant concern in these discussions is China's dominance in uncommon earth processing, an space the place it controls 90 per cent of the worldwide capability.
These uncommon earth supplies are essential for numerous industries, particularly in electrical automobiles, electronics, and clear power.
China has already began inserting curbs on the export of uncommon earths. The report talked about that this transfer is starting to have an effect on the worldwide car sector, notably electrical car manufacturing within the US, Europe, and India. The state of affairs provides extra complexity to the continued commerce talks.
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The present deadline for tariff choices was July 9, 2025. Whereas US President Donald Trump just lately introduced that the tariffs introduced in April can be applied from August 1, in opposition to international locations who did not signal a deal, the report expresses doubt and means that there may very well be an extra extension of the deadline as a result of sluggish tempo of the negotiations.
The SBI report additionally identified that many international locations are nonetheless targeted on sustaining steady commerce relations with China, which is making it tough for the US to push ahead its tariff plans.
Regardless of US efforts, China stays a key participant in international commerce and is basically not a part of new commerce agreements being fashioned.
Among the many US's commerce companions, India, Vietnam, and Japan are in a greater place to finalize commerce offers. India, particularly, is actively working to cut back tariffs and is without doubt one of the few nations exhibiting curiosity in investing in US sectors like semiconductors and shipbuilding.
Learn Extra: US could impose decrease tariffs on India as in comparison with different Asia-Pacific international locations: Report
For India, the commerce relationship with the US is very necessary, because the US now accounts for 20 per cent of India's whole exports.
The report additionally outlined that any settlement between the 2 international locations can be vital for future development and stability.
