Trump’s Trade Claims and India’s Response
New Delhi:
Just ahead of Trade Minister Piyush Goyal’s arrival in Washington for discussions on a potential India-US trade agreement, Donald Trump made a striking statement suggesting that India offered a trade deal with no tariffs.
During a meeting with executives in Doha, where he is currently visiting multiple countries, Trump expressed frustration over challenges in selling in India, claiming that the nation essentially proposed a deal without tariffs. He also criticized Apple’s decision to manufacture in India.
Does India Offer No Tariffs?
Trump mentioned that selling in India is quite difficult and highlighted a supposed arrangement where India would not impose tariffs. He wasn’t very pleased about Apple’s plans to invest in manufacturing in India.
In response, India labeled Trump’s remarks as “premature,” without explicitly mentioning him or the US. Dr. Jaishankar stated that trade agreements need to be mutual and beneficial for both nations. He emphasized that until terms are finalized, it’s too soon to evaluate any potential deals.
“Negotiations are quite complex and take time. Until everything is settled, nothing is decided,” he remarked.
Apple’s Plans in India
Amid these developments, Apple has been accelerating its plans to produce iPhones in India, looking to navigate the likely tariffs imposed in China. Apple had initially planned to manufacture a significant portion of iPhones for the US market in India by the end of 2026, but is now speeding up this timeline.
Recently, right before Trump’s announcement of “mutual tariffs,” Apple’s major suppliers, Foxconn and Tata, indicated plans to ship nearly $2 billion worth of iPhones to the US.
A Positive Market Response
Following Trump’s assertions regarding trade agreements, Indian stock markets responded positively, reaching seven-month highs. With Goyal heading to Washington, New Delhi aims to secure deals in the upcoming “Autumn” timeline stated earlier this year.
Trump’s 90-day suspension on punitive “mutual tariffs” doesn’t impede New Delhi’s stance. “We refuse to negotiate under pressure. While the timelines might encourage quicker discussions, we will not rush a decision that compromises our national interests,” Goyal noted.
Focusing on the Future
Goyal emphasized the intention behind trade discussions, stating that they are advancing with a vision towards “Viksit Bharat” by 2047.
According to reports, India might propose reducing tariffs to zero on 60% of tariff lines in the early stages of negotiations with the US, while also seeking to enhance access for nearly 90% of Indian imports.
Trade Statistics
The US is recognized as India’s largest trading partner, with bilateral trade hitting $129 billion as of 2024, indicating a trade surplus of $45.7 billion in favor of India.
Ongoing negotiations aim to ramp up bilateral trade to $500 billion by 2030.
