Prime Minister Modi and President Trump have agreed to discuss trade and tariff issues amidst Trump’s plan to impose reciprocal tariffs on countries, including India. Foreign Secretary Vikram Misri confirmed the start of these discussions, seeking a fair trade relationship. India’s growing trade surplus with the U.S. highlights the importance of these negotiations.
Prime Minister Narendra Modi and US President Donald Trump have initiated discussions about trade and tariff-related issues, according to Foreign Secretary Vikram Misri. This development follows Trump’s announcement of potential reciprocal tariffs against several countries, including India. Trump’s administration aims to impose tariffs based on the tariffs other countries charge the U.S., effectively equalizing the trade landscape.
During a press briefing on the meeting at the White House, Foreign Secretary Misri confirmed that both leaders agreed to commence dialogues addressing these issues. Trump underscored his stance by stating that the U.S. would impose tariffs equivalent to those charged by other nations, thereby advocating for fairness in international trade.
“On trade, I have decided that for the purpose of fairness, I’ll charge reciprocal tariffs – meaning, whatever countries charge the United States of America, we will charge them – no more, no less.” – Donald Trump
Vikram Misri remarked that discussions would pave the way for potential agreements regarding trade. He indicated that these dialogues present an opportunity to advance previous negotiations which were left unresolved during Trump’s first administration.
India currently maintains a trade surplus with the U.S., with exports exceeding imports significantly. Reports highlight that India’s trade surplus rose from $17.30 billion in 2019-20 to $35.33 billion in 2023-24, emphasizing the growing economic relationship.
Trump’s administration has actively endorsed the use of tariffs as tools for achieving economic and diplomatic objectives. He reiterated his administration’s commitment to implementing reciprocal tariffs in response to perceived disparities in trade agreements with other nations, especially India.
The recent union budget proposals tailored for specific tariffs, such as those affecting Harley Davidson motorcycles, are viewed as strategic moves to ease concerns from the Trump administration regarding India’s tariff policies.
Prime Minister Modi’s US visit marks a pivotal moment for addressing trade tensions with the Trump administration. The commitment to initiate discussions on tariffs indicates a potential path toward resolving existing economic discrepancies. With India’s significant trade surplus with the U.S. and ongoing tariff debates, both nations could benefit from a thoughtful bilateral trade agreement.
Original Source: www.livemint.com
