US President Donald Trump signed new trade rules that will tax goods from 12 countries. He will send these rules to the countries on Monday, July 7. Trump told reporters on his plane that he won’t name the countries until Monday.
“I signed some letters that will go out on Monday – about 12 countries. Different countries will pay different tax amounts,” Trump said. He explained, “Sending letters is easier than other ways.” Some taxes could be as high as 70% and may start from August 1.
In April, the US started a 10% tax on most imported goods. Some countries, including China, faced higher taxes. The US paused these higher taxes but will restart them after July 9.
The US recently made trade deals with the UK and Vietnam. But talks with India have not finished yet. India’s trade team, led by Rajesh Agrawal, came back from Washington without a deal. The US wants to sell more farm and milk products in India, but India disagrees.
India hopes to make a short-term deal with the US before July 9. But India’s Trade Minister Piyush Goyal said India won’t hurry. “We don’t make trade deals because of dates,” he said. He added that any deal must help India first.
India wants the US to remove its 26% tax on Indian goods. India also wants to sell more clothes, shoes, and leather goods in the US. But India won’t change rules about farm and milk products because many small farmers depend on them.
The US and India will keep talking to find a solution that works for both countries. India says it will protect its farmers while trying to get better trade terms. The new US taxes will start soon if no deal is made.