Donald Trump and India’s trade relations: US President Donald Trump has recently shown some softening in his trade policy towards India. Earlier, he had imposed heavy trade duty on India, but now his attitude has changed. According to former Indian diplomatic KP Fabian, these fees had no significant impact on India, causing Trump to not find this strategy successful.
Fabian reported that additional 25% tariffs imposed by India on the purchase of Russian oil were not giving expected results. Given this situation, Trump felt that it was not necessary to implement strict policy on India. They want India to become a nation that is culturally and financially organized and wants to trade with all countries, not only orders.
Trump has described the relations between the US and India as special and has also reiterated his personal friendship with Prime Minister Narendra Modi. He said that he will always remain friends and when asked about being ready for positive business equations, he replied, “I will always be ready … there is nothing to worry.” Prime Minister Modi also appreciated Trump’s positive attitude and considered it important towards a strategic partnership between Indo-America.
At present, 50% tariffs imposed by the US are applicable and the trade agreement negotiations are also stalled. India is not ready to open the market in agriculture and other major areas. Government sources have clarified that there is a difference between Trump’s words and actions, while Trump claimed to reduce the fees on India, India has denied any definite commitment.
KP Fabian has described this policy as a foolish effort, in which he said that it will harm not only India, but also global trade. Along with this, he also expressed concern over inflation in the economy and decline in stock market.
