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President Trump Discusses Trade Deals with India and Japan
On July 1, 2025, President Donald Trump spoke to reporters aboard Air Force One while en route to Joint Base Andrews, Maryland, after visiting a temporary migrant detention center informally dubbed "Alligator Alcatraz" in Ochopee, Florida.
Trump expressed optimism about a potential trade agreement with India that would enable American companies to better compete in the South Asian market while significantly reducing tariffs. He mentioned that India appears willing to lower barriers for U.S. businesses, potentially preventing the 26% tariff rate he had announced on April 2, which is currently paused until July 9.
"Right now, India isn’t allowing anyone in. I believe they will change that, and if they do, we could have an agreement with much lower tariffs," he remarked.
Earlier, Treasury Secretary Scott Bessent mentioned on Fox News that the U.S. and India are close to finalizing a trade deal that would decrease tariffs on American imports and help India avoid a significant rise in tariffs next week.
"We are very close with India," Bessent emphasized when questioned about the progress of the negotiations.
To facilitate this agreement, Indian officials extended their visit to Washington through Monday, aiming to reach a resolution on trade matters with the Trump administration and address ongoing concerns.
A White House official involved in the negotiations indicated that the administration is focusing on trade agreements with countries like India, putting them ahead of Japan, as the July 9 deadline approaches.
India is among several nations negotiating with the Trump administration to avert a steep increase in tariffs. Under potential new terms, India’s "reciprocal" tariff could rise to 27%, up from the current rate of 10%.
Discussions have encountered obstacles, especially concerning import duties on auto parts, steel, and agricultural products, as Trump’s deadlines for implementing reciprocal tariffs loom.
Indian Foreign Minister Subrahmanyam Jaishankar remarked during an event in New York, "We’re in the midst of a complex trade negotiation. I hope we can reach a successful outcome, but I can’t guarantee that as there is another party involved." He acknowledged that both sides need to be flexible and find common ground.
Trump Signals Tougher Stance on Japan
Bessent shared with Fox News that the trade agendas differ among countries, including Japan, which Trump has criticized on multiple occasions.
Trump stated that he is not considering extending the July 9 deadline and will issue letters to notify countries of the tariffs they will incur.
"I’ve dealt with Japan, but I’m uncertain about reaching an agreement. I doubt it," he told reporters as he returned to Washington from Florida.
He suggested imposing tariffs on Japanese imports of 30% or 35%, significantly higher than the 24% rate announced earlier in April, which he had paused until July 9. Trump pointed out that Japan has been reluctant to accept U.S.-grown rice, a request he deemed reasonable while they export millions of cars to the U.S.
"So, I will write them a letter thanking them, explaining that they are unable to meet our requirements, and thus they will face tariffs of 30%, 35%, or whatever rates we determine," he stated. To date, only the United Kingdom has negotiated a limited trade agreement with the Trump administration, accepting a 10% tariff on many goods, including cars, in exchange for specific access to aircraft engines and British beef.
This rewrite maintains the key information while ensuring it’s unique and engaging in American English.
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