India-US Trade Talks: Energy and Non-Tariff Barriers in Focus
India's Prime Minister Narendra Modi is set to meet with President Trump today to discuss trade issues, with tariffs topping the agenda. However, other factors could potentially avert additional duties between the two nations.
Energy as a Bargaining Chip
India is a major recipient of US energy exports, which could be subject to negotiation. As Shayak Sengupta of Columbia University's Center on Global Energy Policy notes, "Trump views these issues transactionally." Additionally, the personal rapport between Modi and Trump may work in India's favor.
Modi's Proactive Moves
Ahead of the meeting, Modi has already discussed reducing tariffs on symbolic US goods like Harley-Davidson motorcycles. However, Trump's response to India's trade deficit remains uncertain.
Non-Tariff Barriers
Beyond tariffs, India may also raise concerns about non-tariff barriers imposed by the US, which could be addressed through regulatory or financial means. India's Scott Lincicome argues that the US employs significant non-tariff protectionism that India finds difficult to match.
A Possible Trade Agreement
Despite the challenges, analysts believe a trade agreement is possible. However, it remains to be seen whether it will substantially alter the trade landscape between the nations. Professor Sengupta notes that previous agreements have failed to significantly reduce trade imbalances.