Donald Trump News / Japan is helpless in front of Trump, now how will India find a solution to the tariff?

Donald Trump News: The biggest trade agreement ever between the US and Japan has been concluded. This historic deal was announced by US President Donald Trump through his social media platform 'Truth Social'. Under this agreement, Japan will invest $550 billion in the US and pay 15% tariff on its goods. Trump had already warned Japan that if no agreement was reached by August 1, a 25% tariff would be imposed on Japanese goods. Due to timely agreement, the tariff was reduced to 15%.

Benefit of investment and employment to America

Trump said that 90% of the benefit of this investment will go to America, which will provide new employment opportunities to millions of people. This agreement will not only attract foreign investment, but the US will also get huge revenue from tariffs on Japanese imports. This investment has the potential to affect global economic equations.

Japan's response and diplomatic pressure

Japan's Prime Minister Shigeru Ishiba said that he wants to fully understand this agreement. However, the US has finalised it. Japan had to take the decision before Trump's deadline to avoid heavy tariffs. This diplomatic pressure forced Japan to quickly reach an agreement.

US agreements with other countries

Before Japan, the US has also signed trade agreements with Indonesia and the Philippines. Under these, 19% tariff has been imposed on the products of these countries, while US products will get tax exemption in their markets. This strategy reflects the Trump administration's policy of taking unilateral advantage from developing countries, aimed at strengthening the US economy.

Trade talks with India

The bilateral trade agreement between India and the US is also in the final stages. The Indian government is preparing to finalise an interim free trade agreement, which may be announced soon. The US has also given India a deadline of August 1, after which tariffs may be imposed. India will have to make a deal in time to avoid heavy tariffs on steel, aluminium and auto parts.

India's tough stand

India has clarified that it has the right to impose retaliatory tariffs under the rules of the World Trade Organization (WTO). India has demanded the removal of additional tariffs on steel and aluminum, as well as concessions in dairy, textiles, automobiles, electric vehicles, wine, petrochemicals and agricultural products. India has advised the US to adopt a flexible stance.