Trump tariffs strain trade ties as the U.S. and India are near a deal, following the president’s call for a 50% tax on EU products.
The ongoing Trump tariffs saga has taken on new twists and turns, notably after the president announced a proposed 50% tax on EU products.
According to reports, the United States and India are currently on the brink of a trade agreement, which could be finalized within the next ten days.
This is a positive development for the market, as crypto assets responded favorably to the US-China agreement reached earlier this month.
Trump Tariffs: India, United States Are Nearing Trade Agreement
The US and India are on the brink of a trade breakthrough to reduce the 26% tax imposed by the Trump tariffs last month, according to a report by CNBC-TV18.
According to reports, the two parties could reach an initial agreement within seven to ten days.
As stipulated in the agreement, the United States would partially exempt Indian products from the reciprocal tariffs of 26%.
In the interim, the United States may impose a 10% tariff on Indian imports, with zero duties on specific product lines.
Earlier today, US President Donald Trump warned Apple’s CEO, Tim Cook, that the company is at risk of a 25% import tax if it fails to start producing iPhones marketed to Americans in the United States.
Nevertheless, the CNBC report observed that Apple’s manufacturing operations in the United States are unlikely to be impacted by these proposed Trump tariffs.
Additionally, US Treasury Secretary Scott Bessent stated that trade negotiations with India and certain other Asian nations are well underway.
He confirmed they will announce additional agreements during the reciprocal tariffs’ 90-day pause period.
Nevertheless, Bessent asserted that the EU is not engaging in negotiations in good faith.
His statement was made in response to Trump’s recommendation to impose a 50% tariff on EU products beginning on June 1.
The president of the United States stated that the European Union has been “extremely challenging to negotiate” and that negotiations with them are not progressing.
The Bitcoin price plummeted from its intraday peak of $111,900 to as low as $108,000 in response to Trump’s statement.
The crypto market is still susceptible to news regarding Trump tariffs; therefore, a prospective trade agreement between the United States and India could benefit the market.
