US President Donald Trump has extended the deadline for implementing reciprocal tariffs from July 9th to August 1st. This decision provides temporary relief to several countries, including India, while imposing significant duties on others.
Trump Tariff: In a significant move impacting global trade, US President Donald Trump has extended the deadline for implementing reciprocal tariffs. The new final date is now August 1st, extended from the original July 9th. This directly benefits countries like India that are still in the process of negotiating trade agreements with the United States.
White House Press Secretary Karoline Leavitt clarified that President Trump will sign an Executive Order to officially implement this change.
What are Reciprocal Tariffs?
Reciprocal tariffs mean mutual trade duties. This means that if a country imposes tariffs on a specific product from the US, the US will impose the same tax on similar products coming from that country. This policy is part of the Trump administration's "America First" strategy.
Relief for India, But Deal Still Pending
The Trump administration has made it clear that a trade deal with India may be reached soon. However, no final decision has been made regarding the timing and terms of the agreement.
Trump has stated that negotiations with India are progressing in a positive direction, and a major decision is possible in the near future. In this context, extending the tariff deadline provides temporary relief to India.
Announcement Made in April, with a 90-Day Grace Period
It is worth noting that Trump announced the imposition of reciprocal tariffs on several countries, including India, on April 2nd. Following reactions from various countries, the US granted a 90-day grace period, which was scheduled to expire on July 9th. This period has now been extended to August 1st.
Tariffs Increased on 14 Countries, Some Facing Up to 40% Duty
While some countries have been given relief, the US has imposed heavy tariffs on 14 countries. These include Bangladesh, Japan, Myanmar, Laos, Thailand, Cambodia, Serbia, Indonesia, South Africa, Bosnia and Herzegovina, South Korea, Malaysia, Kazakhstan, and Tunisia.
Tariff Rates
- Myanmar and Laos: 40% tariff
- Thailand and Cambodia: 36% tariff
- Bangladesh and Serbia: 35% tariff
- Indonesia: 32% tariff
- South Africa and Bosnia and Herzegovina: 30% tariff
- Japan, South Korea, Malaysia, Kazakhstan, and Tunisia: 25% tariff
Agreements Reached with Britain and Vietnam
While many countries face increased tariffs, the US has reached trade agreements with Britain and Vietnam. Following these agreements, these two countries have been granted relief from the tariffs.
