Trump says US could reach trade deal with India, casts doubt on deal with Japan

Straits Times

6 hours ago

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Mr Trump said he believed India was ready to lower barriers for US companies.
WASHINGTON - The United States could reach a trade deal with India that would help American companies compete in the South Asian country and leave it facing far lower tariffs, President Donald Trump said on July 1, while casting doubt on a possible deal with Japan.
Mr Trump told reporters aboard Air Force One that he believed India was ready to lower barriers for US companies, which could pave the way for an agreement staving off the 26 per cent rate he announced on April 2, before pausing it until July 9.
'Right now, India doesn't accept anybody in. I think India is going to do that, if they do that, we're going to have a deal for less, much less tariffs,' he said.
Earlier, Treasury Secretary Scott Bessent told Fox News that the US and India are nearing a deal that would lower tariffs on American imports to the South Asian country and help India avoid levies from rising sharply next week.
'We are very close with India,' Mr Bessent told Fox News in response to a question about progress on trade negotiations.
Indian officials extended a visit to Washington last week through June 30 to try to reach agreement on a trade deal with the Trump administration and address lingering concerns on both sides, Indian government sources told Reuters.
A White House official familiar with the talks said the Trump administration plans to prioritise securing trade deals with countries including India ahead of Japan in the days leading up to the July 9 deadline.
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India is one of more than a dozen countries actively negotiating with the Trump administration to try to avoid a steep spike in tariff rates on July 9, when a 90-day tariff pause ends. India could see its new 'reciprocal' tariff rate rise to 27 per cent from the current 10 per cent.
The US-India talks have hit roadblocks over disagreements on import duties for auto components, steel, and farm goods, ahead of Mr Trump's deadline to impose reciprocal tariffs.
'We are in the middle – hopefully more than the middle – of a very intricate trade negotiation,' Indian Foreign Minister Subrahmanyam Jaishankar told an event in New York on June 30.
'Obviously, my hope would be that we bring it to a successful conclusion. I cannot guarantee it, because there's another party to that discussion,' said Mr Jaishankar, who is in the US for a meeting of the China-focused Quad grouping.
He added that there 'will have to be give and take' and the two sides will have to find middle ground.
Trump suggests higher tariff for Japan
Mr Bessent told Fox News that different countries have different agendas for trade deals, including Japan, which Mr Trump complained about on June 30 and again on July 1.
Mr Trump said he was not thinking of extending the July 9 deadline and would simply send letters notifying countries of the tariff rate they would face.
'We've dealt with Japan. I'm not sure we're going to make a deal. I doubt it,' Mr Trump told reporters aboard Air Force One as he returned to Washington from a trip to Florida.
Mr Trump suggested he could impose a tariff of 30 per cent or 35 per cent on imports from Japan - well above the 24 per cent tariff rate he announced on April 2 and then paused until July 9.
He said Japan was refusing to accept US-grown rice, a demand made by Washington that he described as 'an easy one', while selling millions of cars in the United States.
'So what I'm going to do, is I'll write them a letter saying we thank you very much, and we know you can't do the kind of things that we need, and therefore you pay a 30 per cent, 35 per cent or whatever the numbers that we determine,' he said.
So far, only Britain has negotiated a limited trade deal with the Trump administration, accepting a 10 per cent US tariff on many goods, including autos, in exchange for special access for aircraft engines and British beef. REUTERS