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Us-Eu Deal: The US deal with EU has brought a new twist to the global trade balance, but the situation is not yet clear for countries like India. The date of August 1 is close and the shadow of the tariff is getting deeper.
US-EU DEAL: The world’s major economies are making business agreements with America one by one. After Japan, Indonesia, Vietnam and Britain, now the European Union (EU) has also joined hands with America. Another major agreement has been decided under the new trade policy of Trump administration, but the question is when will the turn of other countries including India come?
Deal between EU and America
The EU-Rus trade deal was finalized after a meeting between US President Donald Trump and European Commission Chairman Ursula von Der Leyen in Scotland. This agreement will not only give stability to the relationship between these two economic forces, but will also affect global trade. About one-third of the total trade of the world is between these two.
Consent on 15% tariff
Under the agreement, the US will impose 15% tariffs on most of the products of the European Union. Earlier, Trump had warned to impose a fee of up to 30% on EU, which was going to be implemented from 1 August. In response, EU has agreed to Zero Tariff on some American products. This deal is considered to be a balance to balance for both sides.
Tariff crisis hovering over many countries including India
While EU is relieved on one side, tariff sword is still hanging on countries like India, Canada, Mexico, South Korea and Taiwan. The Trump administration is preparing to impose more than 10% baseline tariffs on these countries from August 1. Earlier this deadline was July 9, but it was extended in the hope of dialogue.
Tariff bomb already fell on some countries
The US has already imposed heavy tariffs from 20% to 50% on countries like Brazil, Sri Lanka, Maldives, Iraq, Algeria. Trump’s policy is clear, for those who are not ready for the agreement, the punishment of reciperook tariff is fixed.
The threat of tariff on India continues
The country’s Commerce Minister Piyush Goyal recently said that the conversation between India and America is in the right direction and he hopes that India will avoid the danger of 26% tariffs. However, no concrete agreement has been reached so far and the deadline of 1 August is close. According to local media reports, the possibility of any interim agreement is also decreasing before this date.
Now it will have to be seen whether India can forbid America with its diplomacy or it will also have to face the burden of reciperook tariff.
