Donald Trump signals major changes in U.S. trade diplomacy with India and Canada
Fresh Turmoil in U.S. Trade Policy
More breaking developments are emerging from the United States of America concerning critical trade relations with both India and Canada. Former U.S. President Donald Trump made headline-grabbing remarks that signal sweeping shifts in global economic diplomacy.
India Trade Deadline 'Not Fixed'
Speaking about the much-anticipated India-U.S. trade deal, Trump confirmed that the July 9 deadline is not set in stone.
“We could do whatever we want—we could extend it, we could make it shorter. I’d like to make it shorter. I’d like to just send letters out to everybody: Congratulations, you’re paying 25%.”
Trump reiterated that he wants India to remove all trade barriers, describing such a scenario as currently “unthinkable.” Despite the optimism, he conceded uncertainty, saying, “I'm not sure that is going to happen, but we agree that India and trade will be discussed.”
He acknowledged India as one of the early starters in trade negotiations, which he said he appreciated. However, U.S. businesses are still restricted in India, and his vision is of open, barrier-free access.
🔁 Trump's Negotiation Pattern
Trump’s comments mirror his well-known strategy of first announcing strict tariff measures, then opening doors to negotiations. He cited the U.S.–China trade war, which once saw tariffs spike up to 145%, but eventually led to breakthrough negotiations.
“Initially he imposed... later they held rounds of negotiation and announced breakthroughs.”
Trump hopes for a similar trajectory with India, but noted that some tariff components are still pending U.S. court rulings. Congressional authority will also play a role in shaping the final agreement.
Trade Talks With Canada Halted
In a separate development, Trump has halted all trade talks with Canada, branding it a "difficult country to trade with."
The trigger: Canada’s Digital Services Tax targeting major American tech firms like Google, Amazon, and Meta.
“Canada has been a very difficult country to deal with... they did something with our tech companies today trying to copy Europe. It’s not going to work out well for Canada.”
Trump claims the U.S. holds all the economic leverage and has warned that new tariffs will be imposed on Canada within seven days unless it “straightens out its act.”
The timing is significant—Trump had recently visited Canada and held a meeting with Prime Minister Mahkani. Upon his return, he announced this abrupt policy shift in a press conference on June 27.
Canada’s Digital Tax: The Flashpoint
Trump cited Canada’s levy on digital revenue as the core reason for halting talks. He believes the tax unfairly targets American firms and considers the move a copycat action of similar European measures.
“They were foolish to do it... we have all the cards.”
This move is seen as a major escalation in U.S.–Canada trade tensions, signaling a deepening rift over how digital economies should be taxed globally.
Final Thoughts
The developments encapsulate Trump’s negotiation style—bold threats followed by flexible diplomacy. While the India-U.S. trade deal still holds promise, the path ahead remains uncertain due to internal legal hurdles. On the other hand, the Canada standoff marks a dramatic freeze in North American economic ties.
Key Takeaways
- India-U.S. trade deadline is now flexible, not locked to July 9.
- Trump is pushing for removal of all trade barriers with India.
- Canada trade talks terminated due to its Digital Services Tax on U.S. tech giants.
- New tariffs on Canadian goods may be imposed within a week.
- Trump’s approach reflects a mix of hardball tactics and deal-making instincts.
