We have seen some developments in the India-U.S trade relations:Donald Trump recently had a bit of praise for Indian Prime Minister Narendra Modi and a follow-up snub on India’s tariff stance. Key Takeaways
PRAISE MODI
- Trump has called PM Modi “a very smart man” and a great friend repeatedly
- He said he expects the discussions on trade between them to “go very well.”
India Tariffs Are On The Hot Seat:
- Trump has constantly used India as a high-tariff nation saying,India is one of the “highest tariff nations in the world”, among other things.
- He called for “mutual tariffs”, which would mean the US impose tariffs on Indian goods at same rate as India has on US goods.
- Especially pointed out high auto tariffs that India charge.
Background of Trade Disputes
- The country is already engaged in talks with India and there should be steps toward bringing up two-way trade between the two.
- US 25% tariff on Imported Autos announced The same comment again pitting the two of U. against each other.
India is taking steps to reduce tarrifs on a few import from the US, *Suggested solutions to the issues:
- There have been discussions between the two, and they aim to boost bilateral trade flows.
- India has increased the import of oil from US, such as what the US has been demanding.
