‘We should’ve done this years ago’: Trump justifies new tariffs, floats idea of payouts for Americans

‘We should’ve done this years ago’: Trump defends tariffs, hints at payouts for Americans

Just days after rolling out a sweeping new tariff structure targeting more than a dozen countries, US President Donald Trump defended his decision and said the country was now pulling in record levels of revenue.

Speaking to reporters on Monday, Trump said the United States is seeing 'hundreds of billions of dollars' pouring in due to his tariff strategy and added that some of that money could potentially be distributed to American citizens.

“There could be a distribution or a dividend to the people of our country,” Trump said, specifically pointing to middle- and lower-income groups. “One of the things we’re going to be doing is reducing debt.”

The President said the US should have imposed such tariffs long ago. “We should’ve done this many years ago. I did it in my first term with China, but Covid hit. Now we’re doing it with others,” he said, adding that his administration is focused not on 'leverage' but “fairness.”

India hit with 25 percent tariffs, trade talks continue

India was one of the countries hardest hit by the new tariff regime, with a 25 percent levy imposed on nearly half of its USD 86 billion worth of exports to the United States. Key sectors such as textiles, leather and industrial goods are expected to be impacted the most, while exports like pharmaceuticals, electronics and petroleum products remain exempt.

Despite the blow, New Delhi continues to engage with Washington in negotiations aimed at reaching a bilateral trade agreement. According to PTI, the sixth round of talks will take place in India on August 25.

Sources told PTI that while India is open to discussion, it will not compromise on sensitive sectors like agriculture, dairy, and genetically modified (GM) products.

UK, EU and Japan agree to new tariff terms

While India continues negotiations, several other US trading partners have already accepted the revised tariff rates. The United Kingdom agreed to a 10 percent tariff on its exports to the US, a sharp jump from 1.3 percent previously.

The European Union and Japan have also accepted tariffs of 15 percent, which, though lower than the initial threat of 30 percent and 25 percent respectively, are still significantly higher than last year’s low single-digit rates.

Other countries that have signed on to new tariff terms include Pakistan, South Korea, Vietnam, Indonesia, and the Philippines.

Even those that saw their tariffs reduced from earlier hikes are still paying more than they did prior to Trump’s return. For instance, Angola’s tariff dropped from 32 percent to 15 percent in April, but it was just 1.5 percent in 2022.

Temporary retreat after market rout

Trump’s Liberation Day announcement of the revised tariffs had triggered a sharp selloff in financial markets, forcing the administration to temporarily suspend reciprocal tariffs for 90 days. The pause is intended to give countries a window to negotiate bilateral deals and avoid the harsher tariff terms.

Still, Trump reiterated that the US is focused on achieving reciprocity. “We want to see reciprocal wherever we can,” he said. “All I can say is this, our country will be taking in hundreds of billions of dollars.”