USA-India Trade Tensions

At the G20 summit in Osaka, a meeting happened between India’s Prime Minister Narendra Modi and US President Donald Trump. The intention of this meeting was to smooth out trade tensions going on between the two countries.

On 16th June, India imposed taxes on US goods entering India(tarrifs). To this President Trump responded with a tweet (“This is unacceptable and the tariffs must be withdrawn”). Prime Minister Modi wanted to discuss four issues with President Trump namely Iran, bilateral issues on trade, 5 G and defence.(See article: India USA Face-off for more)
Prime Minister Modi shared his views that India wants peace and stability in the Persian Gulf. The US wants big trade deals and improved trade between the 2 countries. India also wants to negotiate better terms for energy imports from the US and Saudi Arabia. On the 5G issue, Prime Minister Modi wants India to collaborate with silicon valley to work on 5G technology. Given the huge size of Indian market and the country’s advancement in science, this can help to achieve Modi’s desire to “Make in India”.

While India has taken retaliatory action on GSP concessions, the country looks forward to resolving these issues.
While these issues will require further negotiations, as per Indian foreign secretary Vijay Gokhale, none of these would derail the bilateral relationship between India and US which is “deep & broad”.

~ Written by Advaith Nair, student of class 8 in Delhi Public School, North Bangalore

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