AsianFin -- U.S. President Donald Trump on Wednesday insisted upcoming reciprocal tariffs on Japan and eyed some trade deals to be made including that with India.
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"We have some pretty good deals to announce," Trump told reporters at the start of a meeting with Bahrain's Crown Prince Salman bin Hamad Al Khalifa at the White House. He noted a possible trade deal with India. “We have another deal coming up, maybe with India,” he said, without providing details.
Trump has said he didn’t expect a broader deal with Japan. The president on Wednesday said his administration is likely to “live by letter” on tariffs with Japan. In a social media post on July 7, Trump disclosed his letter to Japanese Prime Minister Shigeru Ishiba, dictating new reciprocal tariff of 25% on the country, starting August 1.
In an interview with Real America’s Voice broadcast later Wednesday, Trump repeated his prediction of a U.S.-India deal, but didn’t give details. “We’re very close to India, ” Trump replied when asked which deals were on the horizon, and added the United States would also probably reach a deal with the European Union. “We could make a deal possibly with Europe. You know, it’s, I’m very indifferent to it,” Trump said.
Asked about the outlook of a U.S.-Canada deal, Trump said it was ”too easy to say.” Trump on July 10 announced in a letter to Canadian Prime Minister Mark Carney that he would slap Canada with 35% tariffs, separating from all sectoral tariffs.
Trump in the letter claimed the new tariffs resulted from Ottawa’s retaliation. “As you will recall, the United States imposed Tariffs on Canada to deal with our Nation’s Fentanyl crisis, which is caused, in part, by Canada’s failure to stop the drugs from pouring our Country. Instead of working with the United States, Canada retaliated with its own tariffs” Trump wrote.
Trump in the letter also described the trade deficit as “a major threat ” to U.S. economy and national security, which was caused by Canada’s tariffs and other trade barriers.
Just like his letter notifying Japan of new tariffs, Trump in the letter threatened transshipping goods will be high hit with higher tariffs, and Canada, if later decided to slap the U.S. with higher tariffs ,will face extra tariffs with the same level it will impose on top of the new tariff rates. Trump said companies in Canada will be granted exemptions if they decide to make products in the United States. Trump left room for negotiation as in the letter he said “an adjustment” to the letter would be considered if the countries cooperate. “These Tariffs may be modified, upward or downward, depending on our relationship with your Country,” the president wrote.
Trump’s predication of a deal with India came as an Indian delegation arrived in Washington on Monday to discuss and finalize the trade agreement. Bloomberg last Friday reported he U.S. and India are working toward interim trade agreement that could cut US tariffs on goods from India to below 20%. That tariff level, if achieved, would be lower than the 26% Trump proposed for India on April 2.
Trump’s top economic aide, National Economic Council Director Kevin Hassett on Wednesday said “a whole bunch” of additional trade deals would be unveiled very soon, not offering details. Trump's strict August 1 deadline had spurred a flurry of new activity, including talks with countries that had not previously been in touch, Hassett told Fox News.
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