Former US President Donald Trump mentioned a trade deal with India similar to the one with Indonesia. A 35% tariff is threatened if an agreement isn't reached by August 1st.
Trump India Trade Deal: Former US President and Republican leader Donald Trump has made a significant statement regarding a potential trade deal with India. Trump stated that India is working towards a trade agreement with the US similar to the one with Indonesia. This deal is expected to give American companies access to India's large market.
Deal with India being prepared on the lines of the Indonesia model
Speaking to reporters in Washington, Trump said that India is moving towards a trade deal on the same model as Indonesia. He stated that if this deal is not finalized by the deadline, that is, August 1st, India could face heavy tariffs. According to Trump, this deal would prove to be very beneficial for American businesses.
Trump explained that under the deal with Indonesia, a 19% tariff would be imposed on products imported into the US from Indonesia. Meanwhile, American companies would get access to the Indonesian market without any duties. This is a one-sided beneficial deal for America. Trump wants a similar agreement with India.
This agreement could be challenging for India
However, it will not be easy for India to make a trade deal on such terms. Experts believe that a 19% tariff could adversely affect India's exports. If tariffs are not imposed on goods coming from America, Indian companies' competitiveness may weaken. This is the reason why India is being cautious about this deal.
America's displeasure over oil purchases from Russia
Trump also mentioned the Russia-Ukraine war during this time. He said in no uncertain terms that if Russia does not reach a peace agreement with Ukraine within 50 days, a 100 percent tariff will be imposed on countries buying oil and gas from Russia. India is also included in this. Trump believes that this will put pressure on Russia and create compulsion to end the war.
Bill for 500 percent tariff currently stalled
Republican Party Senate leader John Thune said meanwhile that the bill to impose a 500% tariff on countries importing energy from Russia has been put on hold. Trump questioned the utility of this bill, saying that his own tariff policy is far more effective.
American companies want more space in India
Trump says that America expects an agreement with India that allows companies there to expand in India. Especially in sectors like technology, medicine, pharma, and defense, American investment should get more acceptance in India.
According to Trump, if India does not make a deal in time, tariffs of up to 35% can be imposed. This could cause a major loss to India's export industry. He emphasized, "We want equality in the Indian market. If American companies face obstacles there, we will also take measures to stop products coming from India."
Trump called the deal with Indonesia a victory for American policy. He said that Indonesia has high-quality copper, cobalt, and other rare minerals, which are essential for America's technology and military industries. This agreement gave American companies direct access to these resources.
