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We have secured historic trade deals with UK, China, Japan, and EU...receiving trillions of dollars, far beyond billions: US President Trump
Donald Trump announced "historic trade deals" with several nations, claiming billions in revenue for the US treasury. Simultaneously, the US is increasing tariffs on Indian goods to 50%, citing concerns over India's trade practices and ties with Russia. In response, Prime Minister Modi asserted India's resolve to strengthen its self-reliance amidst external pressures.
US President Donald Trump on Tuesday (local time) said his administration had secured "historic trade deals" with several countries, adding that foreign nations were now paying hundreds of billions of dollars into the US treasury.
"We have secured historic trade deals with the United Kingdom, China, Indonesia, Vietnam, the Philippines, Japan, South Korea and the European Union," Trump told reporters. Emphasising the revenue impact, he added, "Foreign nations are now paying hundreds of billions of dollars straight into our treasury... We are receiving trillions of dollars, far beyond billions..."
Earlier, the US Customs and Border Protection (CBP) issued a draft notice outlining additional duties on imports from India. The move follows Trump's August 6 Executive Order 14329, titled "Addressing Threats to the United States by the Government of the Russian Federation."
According to the notice, tariffs on Indian goods are being raised to 50 per cent. The draft, set to be published on August 27, said the Secretary of Homeland Security has directed modifications to the Harmonized Tariff Schedule of the United States (HTSUS) to implement the order.
The CBP clarified that the duties would take effect from 12:01 a.m. eastern daylight time on August 27. From that moment, all Indian products entered for consumption in the US, or withdrawn from bonded warehouses, would be subject to the higher rate.
The escalation comes weeks after Trump first announced on July 30 that Indian goods would face an additional 25 per cent tariff. At the time, he wrote on Truth Social: "Remember, while India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country."
"Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE - ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25 per cent, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST 1st. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!" Trump said.
However, Prime Minister Narendra Modi responded firmly ahead of the new 50 per cent tariff implementation and noted that India would increase its strength to withstand the pressure.
"No matter how much pressure comes, we will keep increasing our strength to withstand it. Today, the Atmanirbhar Bharat Abhiyan is getting a lot of energy from Gujarat and behind this are two decades of hard work..." PM Modi said during a public address in Ahmedabad on Monday.
The development adds a new chapter to the ongoing trade relations between the United States and India.
Source: EconomicTimes
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