India suddenly challenged Trump, saying it would let him see the real power of New Delhi. Is there another move from Modi?

Recently, according to a report from India's Economic Times, Indian Commerce and Industry Minister Piyush Goyal openly stated that India will conduct trade negotiations with the U.S. from a position of strength, adding that India will not conclude an agreement harming national interests before the deadline.

Goyal's original words were: "Today, India will negotiate with the U.S. from a position of strength. We are confident we can compete with any country in the world."

Remember, Goyal had previously called the U.S.-China "tariff war" a once-in-a-lifetime opportunity for India's rise.

Getting back to the point, this Indian minister also emphasized that since Modi's government took office, India has signed free trade agreements with Mauritius, UAE, Australia, European Free Trade Association countries, and the UK.

From India's perspective, these free trade agreements have opened up new markets for Indian goods and enhanced India's voice in the global trade landscape. This may be one of Modi's strategies.

Currently, Trump's most direct card is the tariff baton that he can raise at any time. It is worth noting that on July 7th local time, Trump announced that he would impose a 25% tariff on Japan and South Korea, which will take effect on August 1st.

Trump hasn't given much leeway even to his allies, so he certainly won't be soft on India. If the talks don't go well, Indian goods exported to the U.S. might face a 26% tariff. For Indian industries that rely on the American market, this is a real pressure.

India's "confidence" is well known, so it's not surprising that Goyal could say such things. However, it must be admitted that India's courage is commendable.

But objectively speaking, India's so-called "position of strength" is more of a posture at the negotiation table. In terms of comprehensive confrontation, India's current economic resilience and industrial competitiveness haven't reached the level to match the U.S. on equal terms.

The U.S. demands that India reduce tariffs on cars and dairy products to facilitate the entry of American products into the Indian market. However, the Indian government is aware of the importance of agriculture for national stability and people's livelihood, so it has taken a cautious stance in the agricultural sector.

The Indian automobile industry is a crucial pillar of its manufacturing sector, while the dairy industry is closely linked to the rural economy of India, affecting the livelihoods of many dairy farmers.

American officials are determined to push genetically modified crops into the Indian market, but India has remained firm. If it means making the lives of its farmers harder, such a deal is clearly not something they are willing to do.

After all, the Modi government is under considerable pressure now. The domestic opposition is watching, and the farmer groups are openly warning him not to make too many concessions to the U.S.

The votes and livelihoods of farmers are the bottom line that Modi cannot easily touch. Whether genetically modified crops enter or whether farmers' interests are protected, it affects the stability within India. Even if the Indian government wants to maneuver with the U.S., it must first ensure that the backyard doesn't catch fire.

At this point, Goyal's bold statements are largely aimed at the domestic audience. After all, the eyes of farmers and industrial workers are watching, and they need to see that the government isn't backing down on core interests.

Notably, Trump has signed an executive order, announcing that the so-called "mutual tariff" grace period has been extended to August 1st. This is undoubtedly a final ultimatum to the remaining negotiating parties: either reach an agreement by August 1st, or prepare to face the consequences of increased tariffs like Japan and South Korea.

In short, Trump still wants to use extreme pressure tactics to force the other side to make concessions at the last moment. However, it's uncertain whether he will extend the deadline again, as the president's attitude is always capricious.

Original: https://www.toutiao.com/article/7524538371118268978/

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