INTERNATIONAL: Trump’s Claim: Is India Ready to Slash 100% Tariffs?
Trump’s Bold Assertion
US President Donald Trump has claimed that India is willing to eliminate 100% of tariffs on American goods, a statement that has sparked significant attention. However, he added that he is in no hurry to finalize a trade deal despite this potential breakthrough. This offer, if true, would be a major concession from the world’s fourth-largest economy.
India’s Response
External Affairs Minister S. Jaishankar clarified that trade negotiations between India and the US are complex and ongoing, with no final agreement yet. He emphasized that any trade deal must be mutually beneficial and that premature judgments would be unwise. The talks involve intricate details and are far from concluded.
Mixed Signals from Trump
In an interview with Fox News, Trump highlighted India as a key example of a nation with high trade barriers he aims to dismantle. He stated, “They make it almost impossible to do business,” but noted India’s readiness to cut tariffs completely. Despite this, he signaled no urgency, saying, “That’ll come soon. I’m in no rush.”
Broader Trade Strategy
Trump’s comments are part of a larger plan to reshape global trade dynamics, with new import duty rates for trading partners to be set in the next two to three weeks. He suggested that some countries might face unilateral US decisions on tariffs if agreements are not reached before the July deadline. This approach underscores his aggressive trade policy stance.
Trade as a Diplomatic Tool
Trump also claimed to have used trade leverage to broker a ceasefire understanding between India and Pakistan following the Pahalgam terror attack. He stated, “I’m using trade to settle scores and make peace,” indicating that trade negotiations played a role in de-escalating tensions. He also mentioned a similar strategy with China, reducing tariffs from 145% to 30%.
Pakistan in the Equation
Trump revealed that he dangled the prospect of expanded trade with Pakistan to facilitate the ceasefire. This move was aimed at addressing ongoing border disputes between the two nations. The US has sought to balance its trade relations with both countries to foster regional stability.
China Trade Dynamics
Trump framed his recent trade deal with China, where tariffs were slashed from 145% to 30% and China reduced its tariffs from 125% to 10%, as an act of generosity. He claimed that without this deal, “China would have broken apart.” Further discussions with China are expected to continue.
Implications for India
If India agrees to remove tariffs, it could significantly boost US-India trade but may require concessions from the US side. Jaishankar’s cautious response suggests India will prioritize its economic interests. The outcome of these negotiations could redefine bilateral trade relations.