US President Donald Trump, hinting at the upcoming trade deal between India and the US, said it will be along the lines of Indonesia. He also said the deal will give Washington access to India, which they didn’t have before.
Trump said that the US would pay zero tariffs but imposed 19 per cent on Indonesia. “We made a deal with Indonesia. I spoke to their really great president…and we made the deal. We have full access to Indonesia, everything. As you know, Indonesia is very strong on copper, but we have full access to everything. We will pay no tariffs. They are giving us access into Indonesia, which we never had. That’s probably the biggest part of the deal. And the other part is they are going to pay 19 per cent and we are going to pay nothing. It’s a good deal for both parties,” Trump said.
He said the US will have full access to Indonesia and that a couple of such other deals are going to be announced. “India, basically, is working along the same lines. We are going to have access to India. You have to understand. We had no access to any of these countries. Our people couldn’t go in, and now we are getting access because of what we are doing with the tariffs,” he said.
Trump said that Indonesia has very high quality copper that the US is going to use.
INDIA-US TRADE DEAL
In line with what Trump said, earlier reports also suggested that India could receive a reduced tariff of below 20 per cent. According to a Bloomberg report, India could avoid a formal tariff demand letter altogether.
The trade agreement, expected to be announced through a joint statement, would allow further negotiations while setting a lower initial duty rate under 20 per cent, compared to the 26 per cent initially suggested, as per the report.
US President Donald Trump has so far announced agreements with Vietnam, the UK, and Indonesia warning that most other partners will face tariffs ranging from 15 to 20 per cent. Vietnam was surprised by its 20 per cent rate and is still seeking reductions. If finalised, India would join a small group of countries receiving trade relief from Washington amid pressure on many partners with tariff increases.
