India working to cut trade barriers
India’s reduction of tariffs on the eve of PM Modi’s likely visit to the US in mid-February seems to have helped persuade the Trump administration to not impose tariffs on New Delhi like it has done with Mexico, Canada and China.
There are strategic, economic and political factors at play since the partnership between the two countries covers a wide arc, ranging from military technology to outer space.
New Delhi had on Saturday announced a reduction in customs duty on high-end motorcycles, cars and smartphone parts, a move that would give a boost to American companies like Harley-Davidson, Tesla and Apple. Finance Minister Nirmala Sitharaman, in her Budget speech, stated that import duty on motorcycles with an engine of up to 1,600 cc would be reduced. This came days after Trump had termed India, China and Brazil as the ‘biggest tariff makers.
Last week Trump and PM Modi spoke over the phone and firmed up a meeting which is likely to take place when the PM visits Washington DC from February 12 to 14.
MEAspokesperson Randhir Jaiswal had clarified after Trump’s tariff threat that “we have established mechanisms to discuss such trade matters. Our approach has been to address issues in a manner, which are in keeping with the interests of both countries”.