On Tuesday, September 9, US President Donald Trump said his administration is trying to negotiate addressing trade barriers with India. Trump says he will talk to PM Narendra Modi, expecting high hopes for deals after weeks of discord.
Trump also said he looked forward to speaking to Modi in the ‘upcoming weeks’and showed positivity that they would finalise the deal. “I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries”, he said in a social media post.
On Wednesday, Prime Minister Modi also posted on social media expressing optimism about the close friendship and natural partnership between Washington and New Delhi. He said further that both countries’ teams are working to finish the trade discussion as soon as possible.
“I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people“, Modi said.
Last week, Donald Trump said India had proposed to lower its tariff on US goods to zero, adding that the suggestion was late and India should have reduced its duties years ago.
India’s Chief Economic Advisor warned that the US’s 50% tariff on Indian exports could cut GDP growth by 50 basis points this year.
After New Delhi declined to stop purchasing Russian oil in defiance of Trump’s efforts to end the Moscow war in Ukraine, Trump imposed the highest tariff on India. On Tuesday, the Financial Times reported that Donald Trump was urging the European Union to impose a 100% tariff on imports from India and China.
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The US-India two-way goods trade totalled $129 billion in 2024, resulting in a trade deficit of $45.8 billion, according to US Census Bureau data.
