Trump's Trade Tango with India: Negotiations Continue Amid Tariff Tensions

In a recent development, U.S. President Donald Trump announced that negotiations with India regarding trade barriers are still underway. This statement comes shortly after Trump expressed his concerns about India's and Russia's growing ties with China. The President is optimistic about discussing a trade agreement with Indian Prime Minister Narendra Modi in the near future.

Last week, Trump revealed that India proposed reducing tariffs on U.S. goods to zero, labeling the offer as tardy and criticizing India's high duties. His recent positive statements follow a turbulent period of negotiations that have put a strain on U.S.-India relations, particularly following his implementation of a 50% tariff on Indian goods, which could significantly impact India's GDP.

Despite Trump's assertion of nearing a trade deal previously, the U.S. President doubled tariffs on Indian imports in response to India's ongoing purchase of Russian oil. Alongside pressuring the EU for higher duties on Indian and Chinese imports, these actions raise questions about the future of U.S.-India relations. Current U.S.-India two-way trade amounts to $129 billion, with the U.S. facing a $45.8 billion deficit.

(With inputs from agencies.)