Letters going out to 10-12 countries: US President Donald Trump on reciprocal tariff

US President Donald Trump. Pic/AFP

US President Donald Trump on Saturday said that his administration is immediately sending letters to the first batch of 10 to 12 countries, sharing details of reciprocal tariff rates and the entire process could be completed by July 9.

His comments came amid increasing suspense in India on whether New Delhi and Washington would be able to firm up a much-anticipated trade deal before the US president's tariff deadline ends.

"We are going to start sending letters out to various countries starting tomorrow," Trump told reporters at Joint Base Andrews air base in Maryland before departing to Iowa.

The US president said letters are going out to 10 to 12 countries, and the process could be completed by July 9. The US president, however, did not name the countries.

There have been speculations that the US may firm up a number of trade agreements before July 9, the broad timeline that he set while announcing a 90-day reprieve in April for settling trade.

Trump suggested that the letters would explain what the countries are going to be paying in tariff to the US.

The president said the reciprocal tariffs would come into effect from August 1.

"The money is going to come to the United States from August 1," he added.

The US president said the lower limit in tariff could be in the range of 10 to 20 per cent and the higher bracket would be in the range of 60 or 70 per cent.

The status of negotiations between India and the US on the proposed trade deal is not immediately clear.

India does not enter into any trade agreement based on deadlines and will accept the proposed trade deal with the US only when it is fully finalised, properly concluded and in the national interest, Commerce Minister Piyush Goyal said on Friday.

He also said that India is negotiating free trade agreements (FTAs) with different countries, including the European Union, New Zealand, Oman, the US, Chile, and Peru.

FTAs are possible only when both sides get benefitted and it should be a win-win agreement, he told reporters when asked about the proposed interim trade agreement with the US.

"National interest should always be supreme. Keeping that in mind, if a deal is made then India is always ready to deal with developed countries," Goyal said.

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