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After Trump secures a deal with Vietnam, the US and India press for a trade treaty, according to sources.

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Conflicts over US dairy and agricultural remained unsolved as US-India trade negotiators pushed Wednesday to attempt to reach a tariff-reducing agreement ahead of President Donald Trump’s July 9 negotiating deadline, according to people familiar with the discussions.

The drive coincides with Trump’s announcement of a deal with Vietnam that lowers US tariffs on a number of Vietnamese items from the 46% he had previously threatened to 20%. Although there were few specifics, Trump claimed that US goods might enter Vietnam duty-free.

Trump’s April 2 “Liberation Day” reciprocal tariffs, which were temporarily reduced to 10% to buy time for discussions, included a threat of a 26% penalty on Indian imports.

A week after coming in Washington for negotiations that began last Thursday and Friday, an Indian trade delegation was still there, according to sources in the country’s commerce ministry.

 

According to the sources, they might remain longer to reach an agreement, but not at the expense of important dairy and agricultural issues. They also stated that lowering tariffs on US-grown genetically modified corn, soybeans, rice, and wheat was unacceptable.

According to one of the individuals, the government of Prime Minister Narendra Modi “does not want to be seen as surrendering the interests of farmers – a strong political group in the country.”

But according to the source, India is willing to reduce tariffs on energy items, automobiles, medical equipment, and other fruits like walnuts and cranberries.

 

“Indications that they are close” were reported by a US source with knowledge of the negotiations, and negotiators were instructed to get ready for a possible announcement.

Intense and productive efforts have been made to conclude a deal, the insider continued. I believe that both parties are aware of the geopolitical significance of completing a deal, which goes beyond its economic significance.

Trump reaffirmed similar views Tuesday, telling reporters aboard Air Force One that he could negotiate a deal with India that would lower tariffs for both nations and enable American businesses to compete in the 1.4 billion-person Indian market.

Trump also raised doubts about a possible agreement with Japan, stating that he would slap a tax of 30% or 35% on Japanese imports, which is far higher than the 24% duty rate he declared on April 2. Japan wants to remove the 25% steel and auto tariffs that Trump put in place.

A request for comment on the status of trade talks with India and other nations was not answered by representatives of the US Treasury, the Commerce Department, or the office of the US Trade Representative. A request for comment was not immediately answered by a representative of India’s embassy in Washington.

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Trump gives Hamas a “final warning” on the captives.

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On Sunday, US President Donald Trump issued a “last warning” to Hamas, stating that the Palestinian militant organization must agree to a settlement that will free the prisoners in Gaza.

“My demands have been accepted by the Israelis. It’s time for Hamas to come around too. I’ve told Hamas what will happen if they don’t accept. Trump stated on social media, “This is my last warning,” without providing any other details.

Hamas expressed its readiness to “immediately sit at the negotiating table” in a statement issued shortly after, citing “some ideas from the American side aimed at reaching a ceasefire agreement.”

White House envoy Steve Witkoff delivered Hamas a fresh ceasefire and hostage-resolution plan for Gaza last week, according to U.S. news agency Axios.

Although the White House has not disclosed any information on the plan, Trump stated late Sunday that “you’ll be hearing about it pretty soon,” painting a favorable picture of the talks.

“We had some excellent conversations. “There could be positive outcomes,” he informed reporters. “I think we’re going to have a deal on Gaza very soon.”

Trump sent Hamas a similar ultimatum in early March, stating that if it did not immediately release all surviving captives and give over the corpses of the murdered hostages, “it is OVER for you.”

The Hostages and Missing Families Forum, an Israeli advocacy organization, hailed the US president’s most recent action as a “true breakthrough.”

During the catastrophic October 7, 2023, onslaught on Israel, Hamas forces captured 251 prisoners, with 47 reportedly remaining in Gaza.

According to the Israeli military, 25 of them have died. Israel is requesting that their remains be returned.

– Assault on Gaza City –

Trump and Hamas’ remarks coincided with Israel’s army bombing a residential skyscraper in Gaza City on Sunday, the third in as many days, after Prime Minister Benjamin Netanyahu’s announcement that the military was “deepening” its attack on the strategic city.

When the Al-Roya tower was struck, witness Mohammed Al-Nazli told AFP that it “felt like an earthquake.”

Israeli bombardment on Sunday killed at least 48 Palestinians, according to Mahmud Bassal, spokesperson for the Gaza civil defense department.

Under the same pretext that Hamas had utilized them as observation posts, the air force has destroyed two other residential high-rises.

About 100,000 people have already fled Gaza City, according to Netanyahu, who blamed Hamas for attempting to obstruct evacuations and for using civilians as “human shields.”

Concerns that the already terrible humanitarian situation for Palestinians residing in the region may worsen have been heightened by the escalation.

Fearing for the safety of hostages said to be held in Gaza City, Israeli demonstrators flocked to the streets on Saturday to demand that their government revoke the decision to take the city.

According to an AFP count based on Israeli data, 1,219 persons were killed in the October 7, 2023 strike, the majority of them were civilians.

According to the United Nations-reliable health ministry numbers in Hamas-run Gaza, Israel’s retaliatory operation has killed at least 64,368 Palestinians, the majority of whom were civilians.

AFP is unable to independently confirm the tolls and information supplied by the Israeli military or the civil defense service because to media restrictions in Gaza and access issues in several regions.

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Modi of India claims that relations with the US are still “very positive.”

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India

Following US President Donald Trump’s reaffirmation of their personal friendship and his downplaying of his previous comments about “losing India” to China, Indian Prime Minister Narendra Modi said on Saturday that Washington and New Delhi still had “very positive” connections.

The trade comes amid tensions after Washington accused New Delhi of supporting Moscow’s murderous attacks on Ukraine by buying Russian oil and levied tariffs of up to 50% on Indian goods.

Link to Google News Follow The Daily Star’s Google News channel to stay up to date on all the latest news.
Right-wing populists Trump and Modi, however, have been close since the US president’s first term.

Modi wrote on X that India and the US had a “very positive and forward-looking comprehensive and global strategic partnership” and that he “deeply appreciate and fully reciprocate President Trump’s sentiments and positive assessment of our ties.”

Trump previously declared to reporters that he “will always be friends with Modi of course.”

“The relationship between the United States and India is unique. Trump downplayed his earlier comments about “losing India” to China, saying, “There is nothing to worry about.”

Trump previously declared to reporters that he “will always be friends with Modi of course.”

“The relationship between the United States and India is unique. Trump downplayed his earlier comments about “losing India” to China, saying, “There is nothing to worry about.”

A thaw between the two Asian giants was indicated last week when Modi made his first trip to China in seven years to attend a Shanghai Cooperation Organization meeting.

Trump has come off as annoyed in New Delhi as he tries to claim credit for his alleged Nobel Prize-worthy diplomacy in mediating peace between India and Pakistan after the two nuclear-armed neighbors engaged in their deadliest confrontation in decades in May.

Since then, India, which vehemently opposes any outside intervention on Kashmir, has ignored Trump.

 

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Toyota cuts its profit forecast because of US tariffs.

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Toyota

The impact of US tariffs caused Japanese auto manufacturer Toyota to lower its year net profit prediction on Thursday to 2.66 trillion yen ($18.06 billion).

“Due to the impact of US tariffs and other factors, actual results showed decreased operating income, and the forecast has been revised downward,” the business stated in a statement. In Tokyo afternoon trading, its stock dropped 0.6 percent.

Japan and its vital auto industry suffered a serious setback in April when the Trump administration levied a 25 percent tax on Japanese automobile imports into the US.

In July, Tokyo and Washington announced a trade agreement that would reduce that tax to 15 percent and offer some relief to the industry, although it is unclear when that agreement will go into effect.

Additionally, it is unclear if the vehicle tax and other “reciprocal” levies will be capped at 15 percent or if they will be added to the ones that were already in place prior to Trump’s trade war.

Due to an existing 2.5 percent tax on the auto industry, the current duty is 27.5 percent.

Revenues in Toyota’s first quarter from April to June were up 3.5 percent, but net income decreased by 36 percent.

 

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