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Modi and Trump ensure a productive, upgraded and forward-looking relationship

The Sunday Guardian

|

February 16, 2025

As part of the Atmanirbhar Bharat drive, we will welcome more deals for joint production in India, with transfer of technology in a given time frame.

- SURENDRA KUMAR

Modi and Trump ensure a productive, upgraded and forward-looking relationship

Prime Minister Narendra Modi's just concluded two-day visit to Washington, DC can be summed up in two simple words: highly successful. Ashley Tellis of Carnegie Endowment termed it as "magnificently successful: Modi makes magic". Lisa Curtis of CNAS also felt it was successful.

Yes, the much feared and much talked about issues-tariffs and deportation of illegal immigrants-were discussed openly and candidly, but didn't derail the broader, multidimensional strategic partnership. President Donald Trump, with PM Modi on his right, bluntly and unambiguously pointed out that India tops the pack of countries which impose high tariffs and gave the example of his favourite Harley Davidson motorbike, but said so in a measured tone with a poker face, adding maybe that is how they do business.

Then he unveiled his idea of reciprocal tariffs, which he believed, were very fair as a country which imposes tariffs should be prepared to expect counter tariffs to the same extent. While lowering tariffs on US medical devices, agricultural and dairy product might be tough, this approach offers scope for two sides to make lists of products they trade in and rationalise their respective tariff regime; in a way, India gets time to bring down her tariffs further.

Speeding up bilateral discussions on a mutually acceptable BTA, which will address all trade related issues including tariffs comprehensively and holistically is desirable, its conclusion by 2 April is unlikely; new US TR is yet to be confirmed.

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