Trump optimistic about US-India trade talks

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PTI

New York/Washington

US President Donald Trump has described Prime Minister Narendra Modi as a “very smart man” and his “great friend” while emphasising that tariff talks between the US and India would “work out very well”.

The remarks assume significance as they came the same day foreign secretary Vikram Misri spoke with US deputy secretary of state Christopher Landau to discuss bilateral trade, including the reduction of barriers to achieve a balanced trade relationship.  

“Prime Minister Modi was here just recently and we have always been very good friends,” the US President said in the White House on Friday. The remarks came days before Trump’s reciprocal tariffs on the United States’ trade partners kick in on April 2.

“India is one of the highest tariffing nations in the world… it’s brutal, it’s brutal. They’re very smart. He (Modi) is a very smart man and a great friend of mine. We had very good talks. I think it’s going to work out very well between India and our country,” Trump said.

“And I want to say you have a great Prime Minister,” he said.

During their conversation, Misri and Landau “touched on the growing bilateral trade, defence and technology cooperation, and issues relating to mobility and migration”, the ministry of external affairs said in New Delhi.

US state department spokesperson Tammy Bruce said the two officials discussed “ongoing efforts to reduce barriers to achieve a fair and balanced bilateral trade relationship” and strengthen collaboration in defence and technology.

India and the US have decided to hold sector-specific talks in the coming weeks to finalise the structure of the proposed bilateral trade agreement (BTA), the Modi government said on Saturday.

The engagement between the two countries came in the backdrop of the US’ threat to impose reciprocal tariffs on its key trading partners, including India, on April 2.

The decision to hold discussions in the coming weeks follows four days of talks – between senior officers of India and the US – which concluded here on Saturday.

US assistant trade representative Brendan Lynch is currently in India and holding talks with his Indian interlocutors on firming up the BTA.

“Sectoral expert-level engagements under the BTA will start virtually in the coming weeks and pave the path for an early negotiating round in person,” the commerce ministry said.

In order to realise the shared objective of promoting growth that ensures fairness, national security and job creation, both sides have through four days of discussions here broadly come to an understanding on the next steps towards a mutually beneficial, multi-sector BTA, with the goal to finalise its first tranche by fall 2025, it said.

Modi visited Washington DC in February and held bilateral discussions with Trump. The visit came less than a month after Trump was sworn in as US President for a second term.

During Prime Minister Modi’s visit to the US last month, both sides announced plans to negotiate a mutually beneficial, multi-sector BTA.

In the past, Trump called India a “tariff king” and a “big abuser”. 

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