Trump is unhappy with the Indian government for a mix of reasons including high tariffs – he calls India ‘tariff king’ – India refusing to denounce purchasing of Russian oil, India’s membership in the BRICS – Trump has accused the bloc of attempting de-dollarisation and engaging in “anti-American” activities. What has then ensued are rather precarious discussions on trade.
But could the European Union have the answer to India’s predicament? Veteran journalist and founder of Editorji, Vikram Chandra, seems to think so. He highlighted the importance of India closing the free trade agreement with the EU as soon as possible.
“India should immediately close and sign the Free Trade Agreement with the E.U. on a war footing. Immediately – not by the end of the year. A few contentious points can be put into a Phase 2,” said Chandra, adding that this “practical suggestion” must not have escaped commerce and industry minister Piyush Goyal.
“India has a market of 1.4 billion people, and is the 4th largest economy in the world. If European companies have low tariff entry into India (like British companies now do) – pressure to end this trade war will mount from American companies. We are calculating how Indian exporters will compete in the US market vis a vis their rivals. The same applies to global companies operating in the Indian market,” he said.
The trade talks between India and US, which have gone on for longer than expected, took a nosedive overnight after Trump said Washington will impose a 25 per cent tariff on New Delhi come August 1. He said this even as a meeting between Indian and US officials is scheduled on August 25.
Indian officials called the 25 per cent tariff threat pressure tactics, and told Business Today TV that India does not appreciate such moves and will not bow down to the threats.
In his latest post, Trump called India’s economy “dead”, a rather unsubtle diversion from his earlier remarks on how India is a friend. “I don’t care what India does with Russia. They can take their dead economies down together, for all I care. We have done very little business with India, their tariffs are too high, among the highest in the world,” said Trump, in what has been his harshest words for New Delhi.