Donald Trump has announced trade deals with Japan and some other Asian countries, which will provide some relief to companies and consumers from the pressure of extremely high tariffs on their exports to the US. US Treasury Secretary Scott Bessant has said that the August 12 deadline could be extended again to give more time to talks with China. The status of talks with India is still unclear. However, its progress appears to depend on the country’s highly protected agricultural sector.
However, there have been several reports that an interim trade deal could be reached between India and the US before August 1. This will be followed by a final trade deal in October. Overall, economists say that these tariffs will definitely affect the growth of Asia and the world. The increased tariff rates of America have been put on hold till August 1. Trump and Japanese Prime Minister Shigeru Ishiba on Wednesday announced an agreement that would see Japan impose a 15 percent tariff on US imports, down from the 25 percent retaliatory tariffs previously proposed by the United States.
This is a big relief for vehicle manufacturers like Toyota Motor Corp and Honda. Trump also announced trade agreements with the Philippines and Indonesia.After meeting with Philippine President Ferdinand Marcos Jr., Trump said products imported from his country would be subject to a 19 percent tariff. This is just one percentage point less than the 20 percent tariff proposed earlier. Indonesia will also face a 19 percent tariff, down from the previously proposed 32 percent rate. Earlier, Trump had announced that Vietnam’s exports would be hit with a 20 percent tariff
Talks with China may also be extended. Besant told Fox Business on Tuesday that the deadline for tariffs with China is August 12, but it is likely to be extended. The two sides are scheduled to have another round of talks in Sweden early next week.