U.S.-India trade negotiations have hit a deadlock, with U.S. lawmakers threatening to raise tariffs on Indian goods by 500%! Modi has shouted "Make India Great Again," resolutely refusing to yield to Trump! The U.S. and India have significant differences over import tariffs on automotive parts, steel, and agricultural products. The U.S. hopes India will first commit to cutting import tariffs on goods such as agricultural products, cars, and alcoholic beverages. India refuses to make concessions before the U.S. commits to exempting the 26% reciprocal tariff and lowering steel tariffs, and the current differences between the two sides are difficult to bridge.
India is expected to send a delegation to the U.S. for negotiations before the July 9th deadline for implementing the reciprocal tariffs! India has proposed reducing tariffs on agricultural products such as almonds, cashews, and walnuts, and is willing to offer preferential treatment for U.S. products in areas such as energy, automobiles, and defense. India stated that it is not in a hurry to reach a trade agreement with the U.S., and even in the worst-case scenario, India can withstand the impact of the reciprocal tariffs, as its 26% tax rate still gives it an advantage compared to competitors like Vietnam and China.
India is playing its own game. Even if the final negotiations with the U.S. fail, it doesn't matter, because India only faces a 26% tariff from the U.S. Even if the talks fail, according to the 26% tax, compared to the tariffs of China and Vietnam, it is still very advantageous. So India isn't afraid of U.S. sanctions or paying more taxes; it's just a matter of adjusting the tax rate up.
This is one of the fundamental reasons why India can be so firm. After the India-Pakistan war on May 12th, India saw the completion of the U.S.-China trade negotiations and adopted a similar tough negotiation model to China. However, India's strength is insufficient, and whether it can control the U.S. is unknown. The reality is that India wants a better tariff strategy and to control the U.S., but it's not easy. The U.S. is not something that India can easily control, and this is the reality.
Ultimately, the U.S.-India trade negotiations may be completed by Modi and Trump. Otherwise, if they continue to fail to reach an agreement, they can just collect the maximum 26% tariff. It doesn't matter either way. So no matter what, India feels it can advance or retreat, and isn't worried about any problems. This is the most bold aspect of India.
Modi, in front of Trump, shouted "Make India Great Again," which made Trump feel very awkward, as if he was stealing the lines! But Trump wouldn't react, so he could only let Modi run around freely!
Original article: https://www.toutiao.com/article/1836343688349705/
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