India's Prime Minister Modi Meets with Trump at White House, Tariffs and Other Trade Issues on the Agenda
Key Issues to Watch:
* Energy: India imports a significant amount of U.S. oil and gas, making it a potential bargaining chip in the tariff negotiations.
* Personal Connection: The relationship between Modi and Trump is viewed as a positive factor for India.
* Symbolic Tariffs: Modi has already indicated willingness to reduce tariffs on certain U.S. goods, such as Harley-Davidson motorcycles.
* Non-Tariff Barriers: India is expected to raise concerns about non-tariff barriers implemented by the U.S.
Trade Deficit a Major Concern for Trump:
The trade deficit between the U.S. and India has been widening, with India charging some of the highest tariffs in the world. Trump has repeatedly expressed his dissatisfaction with this imbalance.
Energy as a Potential Trade-off:
India relies on Russia for a significant portion of its energy imports. Shifting some of this trade to the U.S. could potentially offset the impact of new tariffs for India.
Non-Tariff Barriers a Complex Issue:
Non-tariff barriers can include regulations or subsidies that affect trade. While India acknowledges their existence, they emphasize the difficulty of addressing them at the same level as the U.S.
Possible Agreement and Long-Term Impact:
Experts believe a trade agreement is possible but question its potential impact on the overall trade landscape between the two nations. Previous deals have often fallen short of expectations, with limited changes in trade patterns.