Trade deal
After Japan, Indonesia, the US now also finalized the deal with the European Union. Products going from European Union countries to America will now be imposed by US 15 percent tariff. The deal was signed after a meeting between EU President Ursula von Der Leyen and US President Donald Trump. Let us understand what this deal means to India. How much can this affect India.
US President Donald Trump decided to impose a 30 percent tariff on the European Union. Which would also be implemented from 1 August. However, before this, the deal between them was finalized. After the deal, the President of the European Union said that this will increase the business of both. EU will also invest $ 600 billion in America through this deal.
Will pressure on India?
The US has already tried to pressurize India by dealing with Asian countries like Bangladesh, Japan. Bangladesh has approved the wheat of America to enter its country. At the same time, America has deals with Japan on its own terms. In such a situation, India which does not want to accept America’s intervention in its agricultural sector will be under pressure. Along with the deal with the EU, America will also try to get its terms on India. Right now the US has announced tariffs on the country 26 percent, which will be started from 1 August. The 5 rounds of talks between the two countries have not been dealt with even after.
On the other hand, Union Minister Piyush Goyal said that he hoped that the threat of 26 percent tariff on India will be averted and India will reach an agreement with America. However, even after this, according to the media report, the possibility of a deal between India and America before August 1 is very low. Now America can pressurize India to compromise on its own way on the lines of the deal of other countries. That is why Indian auto, pharma and energy companies have to understand how the global tariff structure can affect their long term plan and they have to plan to deal with it.