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US President Donald Trump announced on Monday that from August 1, goods coming from Japan and South Korea will be charged 25%. According to Reuters, Trump also said that he is sending tariff letters to leaders of more than 12 countries including India on Monday.
Trump said on his social media platform Truth Social that he has sent letters to leaders of several countries including India. In these letters, 25% tariffs on Japan and South Korea goods have been said.
India can also get one such letter today, which can mention 26% tariff (16% new and 10% existing). There is talk of bilateral trade agreement between India and the US. If this agreement is not reached before 9 July, then 26% tariff may apply to India.
The Trump administration had earlier promised that they would make 90 business deals in 90 days. But till now the US has only been able to compromise with Britain and Vietnam.
Indo-US interacting in Washington
On April 2, Trump imposed reciperoke (such as Ko Tit) tariff on countries around the world, later postponed for 90 days. Its deadline ends on 9 July 2025. In such a situation, this deal is very important.
Teams from India and America are constantly talking in Washington. Media reports say that most parts of the deal have been agreed, and may be announced on late night or 8 July. Commerce Minister Piyush Goyal has said that India will keep national interests at the top.
What will be the benefit of India and America from this deal?
answer: If it gets a mini trade deal, then:
Benefits for India,
- Textile, medicines, jewelery will get more access to the US market.
- Indian exports will be cheaper by the removal of 26% reciperook tariff, which will increase trade.
- By 2030, India-US bilateral trade can reach $ 500 billion.
Benefits for America,
- Products like Pekan Nuts, Blueberry, and Automobiles will get a chance to sell on low tariffs in India.
- Business relations with India will be strengthened, which is important to counter China’s influence in the Asia-Pacific sector.
For both countries: This deal can lay the foundation of big free trade agreement (FTA) in future.
What were the interruptions in the deal?
answer: Some big screws were stuck in the conversation:
- Disagreement over agriculture and dairy: America was demanding the sale of GM crops and dairy products in India, but India rejected it outright.
- Differences over tariffs: India wants the US to completely remove 26% reciperook tariffs and 10% baseline tariffs, but the US wants to maintain 10% tariffs.
- Trump’s pressure: Trump had said that the countries who do not deal till 9 July, will have to face tariffs. India made it clear that it would not bow under pressure.
What will be the geopolitical effect of this deal?
answer: This deal is not limited to trade, it also has strategic importance:
- Strategy against China: This agreement between India and America is part of countering China’s growing influence in Asia-Pacific. The relationship between the two countries under Quad (India, America, Japan, Australia) will be stronger.
- Russia and oil imports: India is knocking America to buy cheap oil from Russia. Trump has proposed 500% tariff on trading countries with Russia, but this deal may provide some relief to India.
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Today, the announcement of Indo-US Mini Trade Deal may be: 26% deal to avoid tariffs is important; Deadline ending on 9 July
The mini trade deal between India and the US is expected to be announced by late tonight. This deal can open new routes for Indian exporters and American markets. On April 2, US President Donald Trump imposed a reciperook tariff on countries around the world, later postponed for 90 days. Read the full news here …
