High Stakes Showdown: Modi and Trump Discuss Trade Progress Amidst Tariff Tensions
Indian Prime Minister Narendra Modi and U.S. President Donald Trump discussed recent progress in trade negotiations and agreed to maintain contact. Despite previous tariff impositions from the U.S., affecting Indian exports totaling around $50 billion, India countered by cutting taxes on various goods to mitigate impacts, while disagreements over Russian oil imports continue.
Narendra Modi, the Prime Minister of India, announced that he and U.S. President Donald Trump had a conversation on Thursday. They focused on reviewing the progress made in trade negotiations and committed to staying closely connected over the following weeks.
Indian commerce ministry officials disclosed expectations for a new round of trade discussions, following recent meetings in Washington. A significant point of contention remains the U.S.'s decision to impose 50% tariffs on Indian exports, a move affecting around $50 billion worth of goods, particularly impacting labor-intensive sectors like textiles, gems, and shrimp.
The tariff boost is partly attributed to New Delhi's continued imports of Russian oil, which the U.S. claims finances Moscow's war efforts in Ukraine. India, which also benefits economically from these imports, has dismissed these claims as hypocritical, citing American and European dealings with Russia. In response to the tariffs, Modi initiated a substantial tax reduction across various goods to cushion the economic blow.
(With inputs from agencies.)
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