INTERNATIONAL
Modi says he and Trump, in call, reviewed "good progress" in trade negotiations
Indian PM Narendra Modi says he spoke with US President Donald Trump to review progress in trade talks and agreed to stay in close contact in the coming weeks, as both sides navigate tensions over tariffs and oil imports. - REUTERS/Filepic
Indian Prime Minister Narendra Modi said he spoke to U.S. President Donald Trump on Thursday, adding that they "reviewed good progress achieved in trade negotiations" and agreed to stay in close touch over the coming weeks.
AI Brief
Indian commerce ministry officials have said after the latest meetings of trade officials in Washington, another round of trade negotiations are expected soon in either countries.
Trump imposed a 50% tariff on most exports from India, among the highest for any U.S. trading partner. The move impacts about $50 billion of Indian exports to the U.S., mainly hurting labour-intensive sectors such as textiles, gems and jewellery and the shrimp industry.
The tariffs were doubled on Indian goods from 25% over New Delhi's continued imports of Russian oil.
Washington earlier said India's purchase of Russian oil helped fund Moscow's war in Ukraine and that New Delhi also profits from it. India had rejected the accusation as a double standard, pointing to U.S. and European trade links with Russia.
To offset the impact of tariffs, Modi cut taxes on everything from shampoos to cars last month in the biggest tax overhaul since 2017, even as India continues to spend aggressively on infrastructure projects.
About one-fifth of India's total exports in 2024 went to the United States. The new tariffs affect about three-quarters of all Indian goods exported there.
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AI Brief
- The US doubled tariffs on Indian exports to 50%, affecting key sectors like textiles, gems, and seafood.
- Washington claims India's Russian oil imports fund the Ukraine war; India denies hypocrisy, citing Western trade with Russia.
- Despite tensions, both countries plan another round of trade negotiations to ease economic pressure.
Indian commerce ministry officials have said after the latest meetings of trade officials in Washington, another round of trade negotiations are expected soon in either countries.
Trump imposed a 50% tariff on most exports from India, among the highest for any U.S. trading partner. The move impacts about $50 billion of Indian exports to the U.S., mainly hurting labour-intensive sectors such as textiles, gems and jewellery and the shrimp industry.
The tariffs were doubled on Indian goods from 25% over New Delhi's continued imports of Russian oil.
Washington earlier said India's purchase of Russian oil helped fund Moscow's war in Ukraine and that New Delhi also profits from it. India had rejected the accusation as a double standard, pointing to U.S. and European trade links with Russia.
To offset the impact of tariffs, Modi cut taxes on everything from shampoos to cars last month in the biggest tax overhaul since 2017, even as India continues to spend aggressively on infrastructure projects.
About one-fifth of India's total exports in 2024 went to the United States. The new tariffs affect about three-quarters of all Indian goods exported there.