Japan Submits to Trump how will India counter tariff
The largest trade agreement has been made between the US and Japan so far. This historic deal was announced by US President Donald Trump himself through his social media platform ‘Truth Social’. Under this agreement, Japan will invest $ 550 billion in the US and will also pay 15% tariffs on its goods. Trump’s strategy has come to light when he had already warned Japan that if there was no agreement before August 1, Japanese goods would be imposed 25% tariffs. Now the tariff of Japan has been reduced to 15% by timely consent.
America profit from Japan’s investment
Announcing the deal, Trump said that America will get 90% of this big investment from Japan. He also said that millions of people in America will get new employment opportunities with this deal. Through this deal, America will not only get foreign investment but will also get big revenue in the form of tariffs from Japanese products imported. Investment of $ 550 billion by Japan can affect economic equations globally.
After this announcement of the US President, there has also been a reaction from Japan. Japanese Prime Minister Shigeru Ishiba said that he needs to fully understand this deal. However, it has been finalized by America. It is obvious that Japan had to decide before Trump’s scheduled deadline, so that heavy taxes can be avoided on their products. This diplomatic pressure forced Japan to compromise fast.
America has also been done with Indonesia, Philippines
Prior to Japan, the US has also made business agreements with the Philippines and Indonesia. Under these agreements, the US has imposed 19% tariffs on the products of these two countries, while American products will be exempted from tax in their market. Through this strategy, the Trump administration is adopting a policy of unilateral benefits from developing countries. With this, efforts are being made to strengthen America’s domestic economy.
Negotiations on a decisive turn with India
At the same time, talks about bilateral trade agreement between India and America are also in the final stages. The Government of India is preparing to finalize an interim free trade agreement. It is expected that it may be announced soon. America has also given India a deadline of August 1, after which tariffs will start. India will have to deal with time to avoid heavy tariffs on steel, aluminum and auto parts.
India has made its demands with a tough stand
It has been clarified by India to the US that it has the right to impose counter -fees under the rules of the World Trade Organization (WTO). In response to American demands, India has also demanded that additional tariffs imposed on steel and aluminum be removed. Apart from this, India has also sought concessions in dairy, textile and automobile sectors. Especially America has been advised to take a flexible stand on electric vehicles, wine, petrochemicals and agricultural products.