President Trump forecasts a reduction of tariffs by India on American goods while threatening retaliatory tariffs starting April 2. He criticized India’s high tariffs during recent discussions and expressed optimism over an improved trade relationship. Despite this, Indian officials noted that no formal agreement has been reached regarding tariff reductions as negotiations are still ongoing.

President Donald Trump has asserted that he anticipates India will reduce its tariffs on American goods, despite indicating potential retaliatory tariffs beginning April 2. In conversations with Breitbart News, Trump criticized India’s notably high tariffs, labeling them as unfair to US businesses. He expressed confidence in an improving trade relationship, stating, “I believe they’re…probably going to be lowering those tariffs substantially.”

During the interview, Trump reflected on his positive rapport with Prime Minister Narendra Modi, although he highlighted concerns regarding tariff rates. He mentioned that India is one of the highest tariffing nations globally and vowed to implement US tariffs equivalent to those imposed by India if no changes occurred. Additionally, Trump praised ongoing international coalitions aimed at addressing trade disparities, stating, “We have a powerful group of partners in trade.”

As part of recent trade discussions, Trump revealed that he had signed the US onto the India-Middle East-Europe Economic Corridor (IMEC) during Modi’s visit. He advocated for strong trade partnerships while emphasizing the importance of fair treatment, remarking that certain adversaries showed more favorable trade practices than allies such as the European Union. Despite Trump’s optimism about tariff reductions, Indian Commerce Secretary Sunil Barthwal indicated that negotiations were ongoing without a finalized agreement yet.

Previously, Trump had labeled India a “tariff king” and a “big abuser” in terms of trade practices. Nonetheless, India expressed intentions to strengthen relations with the US through reduced tariffs and a bilateral trade agreement. Following Modi’s visit, both nations proposed a mutually beneficial multi-sector Bilateral Trade Agreement (BTA) to enhance economic ties.

President Trump’s remarks underscore the complexities of US-India trade relations, particularly regarding tariff structures. His expectation that India will lower tariffs reflects ongoing negotiations, although no formal agreement has yet been established. The potential for a Bilateral Trade Agreement signifies a mutual commitment to resolving trade discrepancies, amid Trump’s critical views on India’s high tariffs and trade practices. The future of this relationship remains contingent on effective negotiations and partnership developments.

Original Source: money.rediff.com

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