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Osaka trade talks ‘productive’ but ‘expect’ results now, says US
President Trump wrote in a tweet Tuesday that India has had a “field day” levying tariffs on American products and that it was “no longer acceptable”.
The United States has acknowledged that President Donald Trump and Prime Minister Narendra Modi had “productive meetings” on trade on the sidelines of the Osaka G-20 summit, but said it “expects” progress, explaining the context of Trump’s newest tweet expressing exasperation with Indian tariffs.
President Trump wrote in a tweet Tuesday that India has had a “field day” levying tariffs on American products and that it was “no longer acceptable”. Though he did not say more, he had threatened reciprocal duties multiple times in the past.
It was a baffling outburst coming as it did just days after he met Prime Minister Modi in Osaka and discussed trade. He had also teased the possibility of a “big trade deal”.
“The President has long called for free, fair, and reciprocal trade with India,” a senior administration official told Hindustan Times, explaining the president’s tweet.
“Following the President’s recent productive meetings with Prime Minister Modi at the G20, the United States expects to make progress with India on longstanding trade issues and we are working to achieve that goal.”
The two leaders had indeed agreed to resume talks and try and resolve trade differences that have had an outsized impact on bilateral ties that have been on the upward trajectory otherwise. And talks are set to resume with a team of officials from the office of the US Trade Representatives headed for India.
People familiar with the discussions speculated Tuesday that the president was possibly setting up the fresh round of talks with his typically incendiary tweet, and was trying to ensure the India-bound officials fared better than the previous teams that had returned empty-handed and frustrated.
Trade friction between India and the United States escalated dramatically in June, just days after Prime Minister Modi began his second term, when the Trump administration ended special trade privileges for India under the Generalized System of Preferences. It was expected, but the timing rankled.
India retaliated, displaying a new resolve to deal with the trade issue head-on, as a business issue, separated from the other elements of the ties; and, equally importantly, not through more concessions. New Delhi announced retaliatory tariffs it had first proposed to Trump’s steel and aluminum levies in 2018. The package was small relative to Trump’s other trade wars, but the message wasn’t.
The Trump administration has pushed India on several fronts on trade. One, cut tariffs, some of which India conceded, most notable on high-end Harley-Davidson motorbikes that had been personally championed by the American president.
Two, more access to India market, specially in dairy and medical devices sectors. Third, cut its trade surplus with the United States, which India has done by stepping up oil and gas buys and defense purchases. Fourth, roll back new e-commerce and data localization rules, which India has refused so far.
