In 24 hours: Trump's 'full barrier' trade pitch to India, pact with China, cold shoulder to Canada - What's next?

Time of India

5 hours ago

With the Iran–Israel war seemingly in his rear-view mirror, US President Donald Trump has swiftly reset his global focus—once again time zeroing in on trade, tariffs and new deals.
In the past 24 hours, Trump has dramatically suspended trade talks with Canada over its digital services tax, vaguely confirmed a fresh agreement with China, and teased a 'very big' breakthrough soon with India. Central to this flurry of announcements is his revived strategy of issuing reciprocal tariffs—by letter—to nations wishing to access the US market.
Trump's decision to halt negotiations with Canada came after Ottawa unveiled a 3 per cent levy on major US tech firms, which he denounced as 'a direct and blatant attack on our country.'
He declared via social media that he would determine and impose appropriate tariffs within a week, citing the US's dominant position in the relationship. Meanwhile, officials in Washington emphasise that Canada holds more to lose, reinforcing Trump's image of maximum leverage.
But Trump also struck a softer tone on India, calling a potential trade deal 'very big.' He hinted this could result in sweeping access for US businesses, dismantling barriers that have thus far kept them at bay: 'Right now, it's restricted.
You can't walk in there… we agree that going to India and trade…' He added that the China deal was already underway, giving US firms a shot at rare earths and other vital commodities, though details remain under wraps.
Trump
tariff
: What happened in the last 24 hours
President Donald Trump's trade agenda took a dramatic turn over the past 24 hours, as he announced a series of sweeping moves on tariffs, suspended trade talks with Canada, signalled a breakthrough with China, and hinted at a 'very big' deal with India.
The moves mark a sharp escalation in his second-term strategy to assert US dominance over global trade, even as allies and rivals alike push back.
Trump halts Canada trade talks over digital tax
Trump stunned officials on both sides of the border by immediately halting trade negotiations with Canada.
'Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,' Trump posted on his social media network. 'We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.'
Canada's new digital services tax, due to take effect Monday, imposes a 3% levy on tech giants like Amazon, Google, Meta and Airbnb — applying retroactively and totalling nearly \$2 billion in US company obligations.
'We have all the cards,' says Trump on Canada
Speaking from the White House, Trump reinforced his hardline stance. 'They did something with our tech companies today trying to copy Europe. It's not going to work out well for Europe either. And it's not going to work out well for Canada.
They were foolish to do it,' he said.
When asked if Canada could reverse his decision, Trump responded, 'No… It doesn't matter to me. We have all the cards.'
Tariff deadline looms on July 9
The broader context is Trump's push to impose reciprocal tariffs — some as high as 50% — on countries with whom the US runs a trade deficit. The 90-day negotiation window, set to expire on July 9, could usher in a new wave of tariffs.
'We have 200 countries, you could say 200 countries plus.
You can't do that,' Trump said. 'So at a certain point over the next week and a half or so, or maybe before we're going to send out a letter.'
Canadian PM Carney: 'It's a negotiation'
Canadian Prime Minister Mark Carney sought to downplay tensions, saying, 'We will continue to conduct these complex negotiations in the best interests of Canadians. It's a negotiation.'
But Trump appears unmoved, accusing Canada of levying 'very, very severe' taxes on American companies, including tariffs of up to 400% on dairy products.
Digital services tax: The flashpoint
The Canadian tax mirrors EU regulations and specifically targets companies with significant online revenues generated from Canadian users. Trump blasted the policy as 'a direct and blatant attack on our country.'
Matt Schruers, head of the Computer & Communications Industry Association, praised Trump's swift response: 'We appreciate the Administration's decisive response to Canada's discriminatory tax on US digital exports.'
Tariff letters coming soon, says Trump
At a White House press conference, Trump confirmed that the US is preparing to send letters to several countries within the next 10 days.
'We're just going to tell them what they have to pay to do business in the United States,' he said. 'We can do whatever we want. We could extend it. We could make it shorter. I'd like to just send letters out to everybody: Congratulations, you're paying 25 per cent.'
Trump: 'India trade deal coming soon'
Turning to India, Trump expressed optimism that a long-pending deal may soon materialise.
'India, I think we are going to reach a deal where we have the right to go and do trade,' Trump told reporters. 'Right now, it's restricted. You can't walk in there, you can't even think about it. We are looking to get a full trade barrier dropping, which is unthinkable and I am not sure that that is going to happen. But as of this moment, we agree that going to India and trade…'
'A very big one deal' with India
In remarks during the 'Big Beautiful Bill' event, Trump said: 'We have one coming up, maybe with India.
Very big one. Where we're going to open up India, in the China deal, we're starting to open up China.'
Commerce Secretary Howard Lutnick echoed that sentiment, saying: 'You should expect a deal between the United States and India in the not-too-distant future because I think we found a place that really works for both countries.'
Commerce minister Piyush Goyal confirmed talks were ongoing, stressing that the goal was a 'fair, equitable and balanced agreement.'
US-China pact confirmed, details sparse
Trump also confirmed that a deal had been signed with China 'the other day,' though details remain limited. China's Commerce Ministry acknowledged the agreement, mentioning a review of rare earth exports, but offered no timeline.
Treasury Secretary Scott Bessent said China had agreed to make it easier for American firms to acquire key minerals. 'What we're seeing here is a de-escalation under President Trump's leadership,' he told Fox Business.
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