US-India Trade Talks: Trump Praises Modi Amid Concerns Over High Tariffs
US President Donald Trump has expressed concerns over India’s high tariffs but praises PM Modi, anticipating positive outcomes from trade talks. India is actively working to enhance trade ties, including increasing energy purchases and lowering certain import duties, despite ongoing tariff tensions.
United States President Donald Trump has expressed his concerns regarding India’s high tariffs while simultaneously commending Prime Minister Narendra Modi as a “great friend” and “very smart man.” During a recent press conference at the White House, Trump highlighted his belief that the ongoing trade discussions between the two countries would ultimately yield positive outcomes, despite the tensions surrounding tariffs. He remarked, “Prime Minister Modi was here just recently, and we’ve always been very good friends. India is one of the highest-tariffing nations in the world… They’re very smart.”
Trump’s statements arise amidst increasing trade friction, as the United States considers implementing reciprocal tariffs on various nations, including India, which Trump has labeled as practicing unfair trade. He has previously referred to India as the “tariff king,” emphasizing the strength of its import levies. In his own words, he stated, “I have a very good relationship with India, but the only problem I have with India is they’re one of the highest-tariffing nations in the world. I believe they’re probably going to lower those tariffs substantially.”
Since February, India has shown a proactive approach in fortifying its trade relationships with the United States with the objective of reducing tariff-related tensions. Notably, New Delhi has committed to increasing its energy purchases from the US to USD 25 billion, a rise from the previous figure of USD 15 billion. In addition, Trump has indicated that India is on the verge of acquiring F-35 stealth fighters, enhancing cooperation in defense and energy procurement.
In response to Trump’s tariff criticisms, India has amended its import duties, notably decreasing tariffs on bourbon whisky from 150 percent to 100 percent. Moreover, in its February budget, the Indian government instituted reductions on customs duties for luxury automobiles, solar cells, and machinery, resulting in a peak import tariff reduction to 70 percent and an average tariff below 11 percent. Meanwhile, Elon Musk’s Starlink is nearing final regulatory approval in India, following a partnership with Reliance and Airtel, which is anticipated to facilitate further growth in emerging markets.
In summary, President Trump’s acknowledgment of India’s tariffs highlights ongoing trade challenges between India and the United States, even as he lauds Prime Minister Modi’s intelligence and friendship. India is making strides to mitigate tensions by increasing energy purchases and reducing import duties amidst criticism for its trade practices. Both nations appear poised to navigate these challenges in pursuit of advantageous outcomes for their respective economies.
Original Source: www.indiatoday.in
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