Trump proposes new tariff system for countries, including India, China
What's the story
United States President Donald Trump has announced a new tariff system for approximately 180 countries, with significant trading partners like India and China likely included.
The announcement was made during a roundtable in the United Arab Emirates.
Under this system, most countries will be charged tariffs without any prior negotiations or agreements.
"So at a certain point over the next two to three weeks... Scott (Bessent) and Howard (Lutnick) will be sending letters out essentially telling people... what they will be paying to do business in the United States," Trump said.
Trade developments
US-UK trade agreement and ongoing negotiations with India
The US has already signed a trade agreement with the United Kingdom. On May 12, it reached an interim deal with China to reduce tariffs for 90 days, after intense negotiations in Geneva.
Talks are also underway with India, where Commerce Minister Piyush Goyal is currently visiting Washington, DC to discuss a proposed trade deal.
He will meet Secretary Lutnick and US Trade Representative Jamieson Greer during his visit.
Tariff concerns
Trump's unilateral tariffs and their implications
Trump's unilateral announcement of tariffs on some 180-odd countries has raised concerns over their arbitrary nature.
The calculations for these "reciprocal tariffs" are seen as largely subjective.
For most nations, the apprehension of getting letters from Lutnick or Bessent is a real possibility, dictating what tariffs they will face.
In the meantime, the clock is ticking on the 90-day pause, both on the universal, reciprocal tariffs and on the China tariffs.