America Imposes 25-40% Tariffs on 14 Countries, Including Japan and Korea; India Exempted. Trump Says - We are Very Close to an India-US Trade Deal, Agreement Likely Soon.
Trade Deal: US President Donald Trump announced a major trade decision on Monday, imposing new tariffs on 14 countries. These countries include prominent names such as Japan, South Korea, Malaysia, Bangladesh, Cambodia, and Thailand. Tariffs ranging from 25% to 40% have been imposed on these countries. The Trump administration has sent a trade letter to these countries, informing them of the new tariffs and clarifying that it does not see the possibility of a trade agreement with these countries.
Very Close to a Deal with India: Trump
Amidst this tariff announcement, there is some good news for India. Trump himself said that no tariffs have been imposed on India for the time being because the trade agreement between the US and India has reached its final stages. Trump said, "We are very close to making a deal with India. We have also made deals with Britain and China. Now an agreement with India could happen soon."
Reason for Tariffs and Trump's Strategy
Trump's tariff policy is mainly based on the "America First" principle. He wants to protect America's domestic industries. A strategy of discouraging imports by imposing heavy duties on countries with which the US has a trade deficit is being adopted. President Trump has clarified that the decision to impose tariffs on the countries was taken only after meetings and discussions because he does not believe that any trade agreement will be possible with these countries. He also said that some countries may be prepared for tariff adjustments, but this will only happen if they have a valid reason for it.
What are the Obstacles in the India-US Trade Deal
There have been many rounds of talks between India and the US regarding the Trade Deal, but a final agreement has not been reached yet. The US wants India to reduce tariffs on its agricultural and dairy products to allow easier access for American products to the Indian market. In addition, the US is also seeking tariff cuts from India in sectors like automobiles, pharmaceuticals, and technology.
The Indian government has said that it is not in favor of any concessions regarding the agricultural and dairy sectors. These sectors are directly linked to India's food security and rural economy. In addition, India is also expecting the US to provide relief in visa rules and promote opportunities for Indian IT professionals.
