- The advent of Donald Trump as the President of the USA brought forth what was feared by the global community, vis-à-vis widespread destruction caused by ill-advised and unfounded tariffs on commodities imported into that country. That Trump went berserk with his poll campaign promise of making America great again by imposing tariffs on other countries, whom he firmly believed were fleecing was always going to prove as a disastrous move. However, Trump nonchalantly and in his typical impetuosity laced moves went about thrusting tariffs on several countries, including India. It’s well known by now that Trump is a maverick, largely driven by extremely unpredictable moves, claims, and counterclaims – most often false – that the world has come to witness.
PC: The Federal
- Indeed, several leaders from around the world made a beseeching halt at the White House to placate Trump for fear of being taxed. However, Indian leadership, led by Prime Minister Narendra Modi, opted to wait out rather than play ball to Trump’s pressure tactics. After a cat-and-mouse game of the last few months, Trump sounds keen on a trade deal now. But it’s in India’s interest to wait for the US Supreme Court order on his tariffs. After delays, disappointments, and a brief falling out, the India-US trade deal seems around the corner. Trump’s said it’s pretty close. Commerce Minister Piyush Goyal sees it happening any day now, even tomorrow, if you will. For India, it won’t be a day too soon since $40bn worth of labour-intensive exports are at stake. Why?
PC: The CSR Journal
- Because of the punitive tariff imposed by Trump on India in late August. The US equally needs a deal to access Indian markets, and ensure the India-China thaw – forced by its own rigid stand on Russian energy – does not hurt its strategic interests. The deal must happen. Not because Trump considers India an amazing country, but because it is a nation of actually 1.5bn people, where he expects his new ambassador, Sergio Gor, to promote investments in key industries and technologies, increase American energy exports, and expand our security cooperation. Clearly, the US needs India as much as India needs it. After his petulant dead economy jibe in July, Trump got real about India. His tune has changed towards India and PM Modi since then.
PC: Hindustan Times
- As you know, there have been five rounds of trade negotiations meanwhile, and it looks like there’s nothing left to iron out now. For India, this resolution is commendable because not once did it rush to plead its case and pump up Trump, as other countries like the UK, Japan, and Korea did. It refused to bend under the burden of his 50% tariff, and as Goyal said, it has refused to compromise the interests of farmers, dairy, and workers. Likewise, Trump is satisfied that India has very substantially cut back its purchase of Russian energy. Bloomberg recently reported that five big Indian refiners have not ordered any Russian oil for December. That gives Trump his off-ramp to slash tariffs on India. Nonetheless, India must not rush into the trade talks just yet.
