Indian markets have detected a chill in India's American ties

Trump seems to have ended the 'Howdy Modi' era's camaraderie

- ANDY MUKHERJEE

When Narendra Modi dropped in on Donald Trump last week, there was none of the bear-hugging bonhomie that was on display at the White House Rose Garden in 2017. The hand-clasping vibes of the 2019 'Howdy Modi' event in Houston was also missing. The Indian Prime Minister came bearing trade concessions on Harley-Davidson bikes and other items, yet the US president met him wielding a fat stick of tariffs. Trump set a frosty tone when, shortly before receiving Modi, he announced reciprocal tariffs worldwide: The US will tax foreign goods at the same rate other nations apply to its products.

This is worse than the universal levy that Trump had vowed during his campaign. While that would have affected all US trade partners, this one will hit India particularly hard. From iron, steel and auto parts to pearls, stones and mineral fuels, nine of its top 10 exports to the US would suffer incremental duties of 6 to 24 percentage points, according to economists at Kotak Mahindra Bank, who estimate the overall increase in tariff at 7 percentage points.