US President Donald Trump issues big statement on reciprocal tariffs amid trade negotiations: 'Not looking for...'

President Donald Trump stated that the reciprocal tariffs imposed on dozens of trading partners will allow the US to pay down debt. When negotiating tariff rates for trade with other countries, the Republican leader is not looking for leverage but fairness. Trump also suggested distributing tariff revenue directly to American citizens, as a “dividend” for middle- and lower-income households. 

Trump spoke to reporters at the Lehigh Valley International Airport in Allentown, Pennsylvania, on Sunday night local time. "I'm not looking for leverage, I'm looking for fairness. We want to see reciprocal wherever we can and as much as possible. Sometimes, it would be too much for them to handle. It would be a much bigger number. And all I can say is this: Our country will be taking in hundreds of billions of dollars," he said. 

Trump on negotiating tariff rates for trade with other countries

Trump defended the reciprocal tariffs, saying he should have done this "many years ago". He also stated that with the hundreds of billions of dollars coming into the country, he plans to pay down debt. “We're going to pay down debt. We have a lot of money coming in - much more money than the country's ever seen. One of the things we're going to be doing is reducing debt. We should've done this many years ago. I did this during my first term in China. We didn't get to the rest because Covid hit," he added.
 

August 4, 2025

Further, Trump proposed a 'dividend' distribution with tariff revenue. “There could be a distribution or a dividend to the people of our country. I would say for people that would be middle-income people and lower-income people, we could do a dividend," he added. 

Trump imposes revised tariffs on 70 countries

Trump has signed a fresh executive order imposing revised tariffs for 70 countries, including India and Pakistan, in a move that is expected to strain global trade relations further. Tariffs imposed on India's neighbouring countries are less than India's 25%, except for Myanmar at 40%. The new tariff for Pakistan is 19 %, Afghanistan 15 %, Bangladesh 20 %, Indonesia 19 %, Japan 15%, and Sri Lanka 20%. The new tariffs, outlined in a sweeping order signed on Friday (IST), will come into effect from 12:01 a.m. Eastern Daylight Time on August 7.

The executive order states that the revised tariffs are aimed at addressing the national emergency declared earlier under Executive Order 14257. Trump noted that he had "recently received, among other things" new information and had determined it "necessary and appropriate" to impose additional ad valorem duties on the goods of certain trading partners. These new duties will replace those previously imposed under the same order, as amended.

Other countries on which the US imposed tariffs are higher than India include Iraq (35%), Laos (40%), Libya (30%), Serbia (35%), South Africa (30%), Switzerland (39%), and Syria (41%).Countries that imposed lower tariffs than India include the UK (10%), Vietnam (20%), Taiwan (20%), and South Korea (15%), to name a few.

The order by Trump stated "I have determined that it is necessary and appropriate to deal with the national emergency declared in Executive Order 14257 by imposing additional ad valorem duties on goods of certain trading partners".The executive order further directs these changes will apply to goods entering the US for consumption or withdrawn from warehouses on or after the effective date.

(With inputs from ANI)