Trump and Modi signal new effort to reopen trade negotiations
Photo: Donald Trump and Narendra Modi (Getty Images)
President Donald Trump of the United States and Prime Minister Narendra Modi of India promised to resume negotiations on trade. This is happening against the backdrop of the US proposal to the European Union to raise tariffs on India to 100%, according to Trump in Truth Social.
"I am pleased to announce that India and the United States of America are continuing negotiations to address the Trade Barriers between our two Nations.
I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks," wrote Trump.
He expressed confidence that they would not have difficulties "in coming to a successful conclusion for both of our Great Countries."
Modi soon responded with a publication in X, noting that he is waiting for a conversation with Trump. According to him, the USA and India are "close friends and natural partners."
"I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership. Our teams are working to conclude these discussions at the earliest," he wrote.
Pressure on Europe and trade tariffs
The statements of Trump sounded against the background of the pressure of Washington on the EU. The President of the USA called on European leaders to join him in strengthening tariffs against India and China for purchases of Russian energy.
According to the data from sources, Trump informed representatives of the EU that he was ready to support their steps if they introduced large-scale tariffs on India and China. The USA is ready to mirror the tariffs of Europe to strengthen pressure on Vladimir Putin and push him to negotiations about a ceasefire with Ukraine.
This step may complicate the settlement of the trade dispute with India, which escalated last month. Then the USA doubled tariffs on a number of Indian goods to 50% because of purchases of Russian oil.
Blow to the economy of India
Last week, Trump stated that India had offered to reduce duties on American goods to zero, adding that this proposal was late and that this South Asian country should have reduced duties many years ago.
The chief economic adviser of India warned that the 50% duties imposed by Trump on Indian exports to the USA may reduce India's GDP this year by 0.5%.
Trump for months promised that both sides were close to concluding a trade agreement; however instead doubled new duties on Indian imports to 50%.
The USA introduced a duty of 25% on Indian goods and then doubled it due to the ongoing purchases of Russian oil. India condemned the raising of tariffs and stated that it would buy oil from Moscow as long as it is economically beneficial.
India remains the largest buyer of Russian oil supplied by sea. Discounts on raw materials allowed the third-largest consumer of oil in the world to restrain the growth of import costs.
Positive signals from the leaders sounded a week after the visit of Modi to China. There, he met with Vladimir Putin and the head of the PRC, Xi Jinping. Trump then criticized the meeting and stated that India was "lost" for the USA.
