Rama Krishna Sangem
US President Donald Trump said on November 10 Monday the United States was getting close to reaching a deal with India that would expand economic and security ties between the two countries boost US energy exports and promote investments in key US sectors. If a deal is in place by late December or early January, Trump may cut present 50 per cent tariffs on India.
“We’re getting a fair deal, just a fair trade deal,” Trump told reporters in the Oval Office at the swearing-in of his envoy to India, Sergio Gor. “We’re making a deal with India, much different deal than we had in the past.” Trump repeated his optimism that a deal was near, saying, “We’re getting close.”
“India is home to one of the world’s oldest civilisations, the largest country in the world and it’s got over 1.5 billion people and we have a fantastic relationship with the Prime Minister Modi and Sergio has only enhanced that because he’s become already friendly with the Prime Minister…It’s also the fastest-growing middle class, and it’s an important economic and strategic security partner in the Indo-Pacific region…As Ambassador Sergio will work to fortify our country’s bond, promote investments in key US industries and technologies, increase American energy exports, and expand our security cooperation,” Trump said.
India seeks 19 per cent tariffs
Union commerce minister Piyush Goyal on Wednesday gave an update on the ongoing India-US saying that a deal between the two countries was possible, but it will take time. Goyal’s comments come against the backdrop of normalizing of relations between India and the US following the former agreeing to freeze oil imports from Russia.
Trump repeatedly said that India would be cutting down its oil imports from Russia by December this year. If that happens, Trump may not have any objection to reducing 25 per cent additional tariffs he imposed from September 1 on India. Even now, India is asking Trump to limit the total tariffs to just 19 per cent, so as to make competitive among its Asian peers.
Sources in New Delhi estimate that the situation would normalize between the two countries by February next year.
