NEW DELHI (AP) — Prime Minister Narendra Modi’s longstanding bonhomie with President Donald Trump could possibly be examined because the Indian chief kicks off a go to to Washington on Wednesday, desperate to keep away from tariffs which have been slapped on others and threats of additional taxes and imports.
India, a key strategic associate of the USA, has to this point been spared any new tariffs, and the 2 leaders have cultivated a private relationship. Modi — a nationalist criticized over India’s democratic backsliding — has welcomed Trump’s return to the White Home, in search of to reset India’s relationship with the West over his refusal to sentence Russia for its battle on Ukraine.
However Trump has repeatedly referred to India as a “tariff king” and pressed the South Asian nation on the deportation of migrants. In response, New Delhi has proven a willingness to decrease its personal tariffs on U.S. merchandise, settle for Indian residents again and purchase American oil.
However as tariff threats loom, the query stays how a lot a superb rapport between two leaders issues and the way far India will go to chop a deal.
Physique language can be carefully watched
Modi had established a superb working relationship with Trump throughout his first time period in workplace, and the 2 can construct on the areas of convergence and “minimize areas of friction without conceding on core areas of national interest,” says Meera Shankar, India’s former ambassador to the U.S.
“Most other partners have their reciprocal lists ready from the word go, because it’s a point of leverage when you negotiate,” Shankar added, expressing hope that India “will find the right balance between firmness and flexibility” on the tariffs situation.
Modi — boosted by his ruling Hindu nationalist celebration’s victory within the high-stakes state legislature election final weekend in India’s federal territory, together with New Delhi — mentioned earlier than leaving for Washington that the go to was an “opportunity to build upon” collaboration throughout Trump’s first time period and “deepen our partnership” in areas reminiscent of expertise, commerce, protection and vitality.
What has Trump mentioned?
Talking with Modi in January, Trump emphasised the significance of India shopping for extra American-made navy gear and weapons, in addition to decreasing the commerce imbalance. Final yr, the U.S. imported $50 billion extra in items than it bought to India.
A readout from the White Home on the time mentioned Trump “emphasized the importance of India increasing its procurement of American-made security equipment and moving toward a fair bilateral trading relationship.”
Earlier this month, India accepted the return of 104 migrants introduced again on a U.S. navy aircraft, the primary such flight to the nation as a part of a crackdown ordered by the Trump administration.
Additionally, Modi’s authorities lowered some excessive tariffs, together with on some Harley-Davidson bikes, from 50% to 40%. In 2023, India had dropped retaliatory tariffs on U.S. almonds, apples, chickpeas, lentils, and walnuts.
“Another thing we can expect is that Modi would offer to purchase more American (natural) gas to narrow the U.S. trade deficit,” mentioned Lisa Curtis, director of the Indo-Pacific safety program on the Heart for a New American Safety, a Washington-based assume tank. “This will help a little bit.”
Issues over China
India is seen as integral to the U.S. technique of containing China within the Indo-Pacific and is to host a summit of a gaggle of nations generally known as the Quad — made up of the U.S., India, Japan and Australia — later this yr.
However India will doubtless must recalibrate its stand in case of a Washington-Beijing thaw underneath Trump.
“Trump’s outreach to China will complicate India’s ability to cultivate the American desire to use India as a proxy against China without actually ever becoming one,” mentioned Happymon Jacob, founding father of the New Delhi-based Council for Strategic and Protection Analysis.
India turned the web page with China and in December agreed to work towards an answer to their long-running border dispute within the Himalayas after a navy standoff that started with a lethal conflict in 2020.
“Even a tactical accommodation between the U.S. and China has implications for India,” Shankar mentioned.
Protection offers on the agenda?
The U.S. is India’s largest commerce associate, with a commerce deficit of $50 billion in India’s favor. The Indo-U.S. items and companies commerce totaled round $190.1 billion in 2023. In response to India’s Exterior Affairs Ministry, the U.S. exports to India have been value practically $70 billion and imports $120 billion.
India will depend on Russia for practically 60% of its protection tools, however the battle in Ukraine has added to doubts about future provides, and New Delhi has been wanting extra towards the U.S., Israel, Britain, and others.
A not too long ago struck deal will permit U.S.-based Normal Electrical to associate with India-based Hindustan Aeronautics to supply jet engines for Indian plane in India and the sale of U.S.-made armed MQ-9B SeaGuardian drones.
Since 2008, India has contracted over $20 billion value of U.S.-origin protection tools.
“For India, that could also be an area where we see some synergies with the U.S.,” Shankar mentioned, including that Trump will doubtless search to influence India to purchase extra protection tools.
Raja Mohan, an analyst on the Institute of South Asian Research in Singapore, mentioned Modi’s go to can be a superb time to advance Indo-U.S. ties.
“India’s diplomatic skills will be tested, so the general goodwill that exists between Trump and Modi should be translated into concrete outcomes,” Mohan mentioned.
