Tough trade talks to overshadow Trump-Modi meet
US president declares it ‘Reciprocal Tariffs Day’
Washington: Just hours before his scheduled trade discussions with Prime Minister Narendra Modi on trade and tariffs, US President Donald Trump took to social media to declare a major shift in economic policy. Announcing the introduction of reciprocal tariffs, Trump said, "Three great weeks, perhaps the best ever, but today is the big one: reciprocal tariffs!!! Make America great again!!!" Trump made the post on his Truth Social platform.
Trump's announcement comes right ahead of his talks with PM Modi, where trade is expected to be a key focus. The introduction of these tariffs could indicate a shift in US-India trade relations, potentially influencing negotiations between the two leaders. Reciprocal tariffs, which aim to match duties imposed by other nations, could have far-reaching consequences for global trade, raising concerns over increased tensions in international markets.
With Trump’s “America First” trade policy raising concerns in New Delhi, Modi’s priority is expected to be preventing any punitive trade measures against India. Experts suggest that both countries may explore a potential trade agreement to mitigate high tariffs and expand economic cooperation.
This strategy would essentially align US tariffs with the tariff rates imposed by other countries on US imports. Under the policy, if a country like India, for example, imposes a 25% tariff on US automobiles, the US would match that rate on imports from India. The announcement has sparked concerns among economists, who warn that such a move could significantly raise tariffs on goods from emerging market economies. Countries such as India and Thailand, which have higher tariff rates on US products, would be most affected. In contrast, nations with existing trade agreements with the US, like South Korea, are seen as less vulnerable to these new tariffs.
Javelin and Stryker deals
Two major defence deals— for the Javelin anti-tank missile and the Stryker armoured vehicle— will be announced during Modi’s visit.
