Trump signals progress on India Trade, criticizes Japan stance
He believes this deal would help American companies do more business in India and reduce the high tariffs they currently face. However, he cast doubt on making a similar deal with Japan.
Speaking to reporters on Air Force One, Trump said India might soon lower its trade barriers. If that happens, he said, the U.S. would not impose the 26 percent tariffs that were announced in April and paused until July 9.
"Right now, India doesn't accept anybody in," Trump said. "But I think they will. If they do, we'll have a deal with much lower tariffs."
U.S. Treasury Secretary Scott Bessent also said the U.S. and India are very close to a deal. He said the agreement would lower tariffs on American goods going to India and help India avoid hefty new tariffs that could begin next week.
Indian officials stayed in Washington through June 30 to continue talks. According to Indian government sources, both countries are working hard to reach a trade agreement and solve remaining issues.
A White House official said the Trump administration is focusing more on making a deal with India than with Japan, especially before the July 9 deadline. On that date, a 90-day pause on tariff increases ends, and India could face a new 27 percent tariff, up from the current 10 percent.
Talks between India and the U.S. have had some disagreements, especially over tariffs on car parts, steel, and farm products. Indian Foreign Minister Subrahmanyam Jaishankar, speaking at an event in New York, said they are "hopefully more than halfway" through the talks. He said both sides will need to compromise.
Meanwhile, Trump was more critical of Japan. He said it was unlikely the U.S. would make a deal with Japan by the deadline. Trump said Japan refuses to buy rice from the U.S., even though it sells millions of cars in the American market.
He warned that if Japan doesn't agree to U.S. demands, he could impose tariffs as high as 30 percent or 35 percent on Japanese imports, higher than the 24 percent previously announced and paused until July 9.
"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 percent, 35 percent or whatever the numbers that we determine," he said.
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