Washington: US President Donald Trump is in touch with representatives from India, Vietnam and Israel to negotiate trade deals that could alleviate proposed tariffs on those countries in advance of a deadline next week, CNN reported on Friday, citing a source. Such discussions could provide an off-ramp for Trump-- if the two sides reach an agreement, added the media report.
In a social media post, Trump said the general secretary of Vietnam’s Communist Party, To Lam, reached out with a proposal to “cut their tariffs down to zero” if a mutual agreement can be struck.
US starts collecting Trump's new 10% tariff, smashing global trade norms
US customs agents began collecting Trump's unilateral 10 per cent tariff on all imports from many countries on Saturday, with higher levies on goods from 57 larger trading partners due to start next week. The initial 10 per cent "baseline" tariff took effect at US seaports, airports and customs warehouses at 12:01 a.m. ET (0401 GMT), ushering in Trump's full rejection of the post-World War Two system of mutually agreed tariff rates. "This is the single biggest trade action of our lifetime," said Kelly Ann Shaw, a trade lawyer at Hogan Lovells and former White House trade adviser during Trump's first term.
Trump adjusts tariff rates
Earlier on Friday, the Trump administration adjusted its reciprocal tariff rates for at least 14 nations, including India. Initially, India's tariff was pegged at 27 per cent, a slight uptick from the 26 per cent Trump cited in his April 2 statement. The latest annexe, however, reflects a rollback to 26 per cent. President Trump, who has described himself as a close ally of Prime Minister Modi, argued that India's trade practices have been "unfair" to the US, justifying the 26 per cent tariff on the world’s fifth-largest economy.
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India assessing Trump's tariff impact
The Centre has said it is "carefully reviewing" the effect of Trump's tariffs, and that the Commerce Ministry is gauging the concern along with all stakeholders. It said that the government has taken feedback from the exporter's community and assessing the opportunities that may arise due to the tariff changes.
Growth expected to slow down
The Indian economy's growth is expected to have slowed to a four-year low of 6.5% in the financial year ended March 31, as urban demand weakened due to high inflation, tight liquidity and tougher RBI rules slowing loan growth across personal loans and credit cards. The central bank has, however, significantly eased liquidity conditions since new Governor Sanjay Malhotra took over in December. Plans to further tighten banking regulations have also been pushed back.
(With inputs from agencies)
Also Read: Trump Revises Reciprocal Tariff On India In Updated White House Document | Check New Rate