Trump: India offered zero tariffs, but I’m in no rush for a deal
External Affairs Minister Jaishankar clarified that trade talks with the US are continuing, and that they are complicated and far from over
US President Donald Trump has claimed that India offered to remove all tariffs on American imports, and portrayed it as a huge trade victory for the US.
In an interview with Fox News, Trump said, “They make it almost impossible to do business. Do you know they’re willing to cut 100 per cent of their tariffs for the United States?”
However, the US president indicated that he is no hurry to formalise any trade deal.
“That will come soon. I’m in no rush. Look, everybody wants to make a deal with us,” said Trump.
Nothing is decided: India
India’s External Affairs Minister S Jaishankar, on the other hand, clarified that trade talks with America were continuing, and that they were complicated and far from over.
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“Between India and the US, trade talks have been going on. These are complicated negotiations. Nothing is decided till everything is. Any trade deal has to be mutually beneficial; it has to work for both countries. Until that is done, any judgement on it would be premature,” said Jaishankar.
Trump’s larger strategy
Trump’s statements seem to indicate a larger strategy at play. He is trying to use trade as a geopolitical tool. During the past week, he claimed several times that his administration was instrumental in brokering a cease fire between India and Pakistan.
He has also in the past referred to India’s high tariffs, and at the same time hinted at offering trade incentives to Pakistan.
“I’m using trade to settle scores and make peace,” he said.
The US president had, in his posts on Truth Social, said that he told both countries to “make peace and go make trade deals”.
Also Read: Why India must not appease Trump admin with cheap chicken, meat imports
Trump has also framed his trade negotiations with China as acts of economic diplomacy with consequences for whole world. He pointed out the fact that China has reduced its tariffs from 125 per cent to 10 per cent after the US cut tariffs on China from 145 per cent to 30 per cent.
“If I didn’t do that deal with China, I think China would have fallen apart,” said Trump.
Moody’s downgrades US credit rating
In the meantime, rating agency Moody’s has downgraded US’ sovereign credit rating from its top-tier Aaa to Aa1, pointing out factors like persistent fiscal deficits, increasing national debt, high interest costs, and ‘political dysfunction’ in Washington.
Also Read: Trump says he convinced India, Pak to ‘let’s have peace, go make trade deals’
Analysts feel that this downgrade could raise the cost of borrowing for the US government, create instability in financial markets, and erode confidence in America as a global financial safe haven.