Former U.S. President Donald Trump recently said that he made a trade deal with Vietnam. As part of the deal, the U.S. will lower taxes (tariffs) on many Vietnamese goods to 20%. Before this, Trump had threatened a higher tax of 46%. In return, he said American products could enter Vietnam without any tax, but he did not give many details.
Trump also warned that Indian products could face a 26% tax under his new “Liberation Day” plan announced on April 2. But for now, that tax has been reduced to 10% to allow time for talks.
Sources in India said a team of Indian trade officials has been in Washington for over a week to hold trade discussions. They might stay longer to reach a deal, but they don’t want to agree to things that hurt Indian farmers, especially when it comes to U.S. crops like genetically modified corn, soybeans, rice, and wheat.
One official said the Indian government, led by Prime Minister Narendra Modi, doesn’t want to look like it is giving up farmers’ interests, as farmers are a powerful political group in India.
Trump Pushes for Trade Deals with Vietnam and India
Still, India is open to lowering taxes on things like walnuts, cranberries, medical equipment, cars, and energy products.
An American official involved in the talks said both sides are working hard and are close to reaching a deal. He said both countries understand how important this agreement is, not just for business, but also for their overall relationship.
Trump also said on Tuesday, while speaking to reporters on Air Force One, that he may soon strike a deal with India that will lower taxes for both sides and help American companies sell more in India’s huge market of 1.4 billion people.
At the same time, he showed doubts about making a deal with Japan. He said he may raise taxes on Japanese goods to 30% or 35%, which is higher than the 24% he announced earlier. Japan wants the U.S. to lower existing taxes of 25% on cars and steel.
Officials from U.S. trade departments and the Indian embassy did not respond to questions about the current talks.
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