India To Pay 10 Per Cent Tariffs If It Continues In BRICS: Donald Trump

Washington: India will have to pay a 10 percent reciprocal tariff if it continues as a member of BRICS, said U.S. President Donald Trump on Tuesday. The remarks by US President has come when India and America are negotiating a full fledged Foreign Trade Agreement (FTA).

Trump claimed that BRICS is attempting to undermine the U.S. dollar and asserted that the United States will not accept such a shift. In another statement, he added that India “won’t be a member of BRICS for too long.”

Media reports also suggested that Donald Trump may announce a mini India-US trade deal before a final trade agreement, however, the US President did not mention any details about the expected deal besides a mention on the BRICS nations.  

What we know about India-US mini trade deal

The mini trade deal between India-US was supposed to be announced last week when an Indian delegation was in the United States holding negotiations to finalise the terms for Foreign Trade Agreement.

However, a stalemate on auto, steel and agriculture remained due to which the deal was delayed. As per reports, a mini trade deal was supposed to take place now and a full fledged FTA was expected to be signed during Donald Trump's visit to India, likely in September for the Quad Summit.

The President also criticised foreign tariff policies, stating that other countries impose tariffs at “ridiculous levels.” “Without tariffs, the government doesn’t have the proper framework to conduct trade. We're choosing a number that is low—much lower than what they charge us,” he said.

Trump noted that several countries have granted the U.S. total access with zero tariffs, asking not to be charged. “I don’t like those deals. It’s time America charged the countries that ripped us off,” he added.

BRICS was set up to discourage US Dollar  

Speaking to the press at the White House, Donald Trump criticised BRICS, stating it was established to undermine the U.S. dollar. He added that India would be subject to a 10 percent tariff if it remains part of the economic bloc.

Trump further asserted that any country in BRICS will have to pay a 10 percent trade tax.

People appreciating what we are doing, says Donald Trump  

The U.S. President stated that if other nations want to challenge the United States, that's fine but they must be prepared to pay for it. He added that people are beginning to appreciate the administration’s actions, and pointed out that almost every country imposes tariffs on U.S. goods.

“We built South Korea, yet they pay us very little,” he remarked, further highlighting that many countries maintain significant trade deficits with the United States. “We supply their military, and starting August 1, every country will be required to pay tariffs,” the President said.

They don't have to pay if they are not doing trade with US, Donald Trump  

Donald Trump said that countries not engaged in trade with the U.S. don't have to pay tariffs. “We were a rich country, we had an all-tariffs nation,” he remarked.

He added that the European Union is treating the U.S. very nicely nowadays, in contrast to its earlier stance. “They used to treat us very badly. They were very tough,” Trump said.

“We’re currently in talks, and we’re two days away from sending a letter that signifies a deal with the EU, mostly at a lower rate like 25 percent.”

“The tariffs are starting to come in at record levels,” he continued saying "We only follow the rules of other nations who charge us tremendous tariffs. We were led by stupid people or people without any business sense. The big money will start flowing on August 1,” Trump concluded.