NEW DELHI (Diya TV) — India is evaluating a potential trade agreement with the United States, aimed at reducing tariffs and increasing imports from the U.S. amid policy changes from President Trump. While the U.S.-India economic relationship has steadily grown, it has been marred by a significant trade deficit and trade barriers, particularly from India.
The U.S. has accumulated a $45 billion trade deficit with India in 2022, largely driven by high tariffs imposed by the Indian government. Trump, who has long criticized India’s trade policies, has labeled the country the “king” of tariffs. Despite this, both countries see the opportunity to expand trade, particularly in the Indo-Pacific region, where they both aim to counter China’s economic dominance.
India’s Prime Minister Narendra Modi has used tariffs to protect domestic industries and promote his “Make in India” initiative. However, India is now considering a deal that could cut tariffs, responding to Trump’s threats of imposing higher duties on imports from certain countries, including India. Trump’s push for tariffs could serve as leverage to open foreign markets for U.S. companies, potentially benefiting both countries by creating U.S. jobs and reducing trade imbalances.
Despite the trade barriers, there is optimism that the two leaders, Modi and Trump, could come to a historic agreement. With both nations seeking to enhance their economic power in the region, experts suggest that the time may be right for a substantial trade deal that benefits both sides.
