Concerned about new Indian tariffs, says U.S. official

Concerned about new Indian tariffs, says U.S. official

Context:

• The Donald Trump administration has moved the U.S. closer to India than any previous administration on strategic issues, but disagreements on commercial issues remain challenging.

What is more in news?

• The union budget and the new round of tariffs is seen ro make commercial issues more challenging, in attracting U.S. investors and improving the trade relations.
• The economic relationship has been a bit more difficult than the strategic area of the relationship.
• This administration is very interested in having fair and reciprocal trade relations with India.
• The President has committed to opening market access for U.S. companies, obviously India also has investments in the U.S.

Trade imbalance:

• The US mentioned high tariffs on high-end motorcycles in India recently.
• Trade figures in the last quarters have reported a reduction in the imbalance, which is likely because of the energy import by India from the U.S.

India’s holds an important position:

• The official pointed out that no other country finds as many position mentions as India does in the Trump administration’s National Security Strategy (NSS), on dealing with South Asia and Indo-Pacific.
• The U.S. is also  willing to do much more with India on defence, the official said, seeking more cooperation from India.