BBC News
Indian Prime Minister Narendra Modi welcomed the “megapartnership” with the US as he and US President Donald Trump agreed to a Delhi deal to import more American oil and gas.
Modi’s two-day visit comes as Trump recently ordered all US trading partners, including India, to face bold mutual tariffs.
While both men praised each other’s leadership, Trump criticised India for having the highest trade tariffs in the world, calling them a “big problem.”
Indian leaders say they are open to reducing tariffs on US goods, deporting undocumented Indian citizens and purchasing military fighter jets from the US in an attempt to ease imminent trade barriers. Ta.
At a joint press conference, Modi made several references to Trump’s “Make America Great Again” slogan, including his own spin.
“Maga Plus Miga… (IS A) Mega Partnership for Prosperity.”
Trump also added that India will “buy a lot of our oil and gas” to close the trade deficit between the two countries.
“They need it, and we have it,” Trump said.
Radhika Rao, a senior economist at DBS Bank in Singapore, said that as India relies on imported oil sourced from multiple countries, the energy contract with the US would “show both parties relatively low fruit.” “We’ll do that.”
“The US is the largest export market for Indian goods and services, highlighting the administration’s willingness to preemptively smooth trade relations and provide concessions to narrow down the bilateral trade deficit operated by the US with India. “I’m,” she said.
However, “The challenge for India is to balance its own trade deficit, as US oil and gas can be more expensive due to the strong dollar,” says Senior Researcher at the Institute of South Asian Studies, National University of Singapore. Amitendu Paritt, said:
“Mutual tariffs can continue at some stage and at India. Hopefully, they won’t turn out to be less than expected,” Dr. Parit said.
Trump also added that the US will increase its military hardware sales to India by millions of dollars and ultimately supply F-35 fighter jets to Delhi.
They also spoke about immigration (another problem with bilateral relations). Trump has announced that the US will hand over the man who was allegedly plotting the 2008 Mumbai terrorist attacks to “facing Indian justice.”
Modi thanked Trump for allowing him to hand over him and vowed to accept the repatriation of Indian citizens who live illegally in the United States.
Last week, the US was deported by 104 Indians in the military who were accused of illegal immigrants, and there was a video showing bondage retirees. A second flight is scheduled to land in India on Saturday.
Indians are one of the largest populations of unauthorized immigrants in the United States. They also hold the majority of the H-1B visas. This is a program that Trump temporarily banned during his first term, and is now under new scrutiny.
Shortly before his meeting with Modi, Trump ordered his advisors to calculate a wide range of new tariffs for US trading partners around the world, warning that it could come into effect by April 1.
He acknowledged the risks of his tariff policy, but he argued that the policy boosted American manufacturing and that the country was “full of work.”
Trump told reporters that when it comes to importing taxes, “Our allies are worse than our enemies.”
“We had a very unfair system,” the Republican president said before meeting Modi. “Everyone used the US.”
The White House has also issued a news release launching trade shots across the bows of India and other countries.
The document noted that in countries where Washington has recognized the most favorable country (MFN), the average US tariff on agricultural products is 5%.
“However, the average applied MFN tariff in India is 39%,” the White House fact sheet states.
“India also charges 100% tariffs on US motorcycles, while Indian motorcycles only charges 2.4% tariffs.”
Trump has already placed an additional 10% tariff on imports from China, citing the production of fentanyl, a deadly opioid that caused the US overdosing epidemic.
He is also preparing tariffs for Canada and Mexico, two of the largest trading partners in the United States, which could take effect in March after being suspended for 30 days.
Earlier this week, he removed the exemption from the 2018 steel and aluminum tariffs.
