ISLAMABAD – US President Donald Trump failed to strike a trade deal withIndia at the end of a visit big on photo opportunities but short onsubstance and overshadowed by deadly riots.
US-Indian trade relations have worsened in recent years as Trump’s “AmericaFirst” aim of reducing deficits has collided with the “Make in India”mantra of Prime Minister Narendra Modi.
Speaking at the end of a short tour that saw him hold hands at the TajMahal with First Lady Melania and address a huge rallylink,Trump on Tuesday said only that they had made “tremendous progress” towardsan accord.
“The United States has to be treated fairly and India understands that,” hetold a news conference, saying that “if a deal happens with India, it willbe towards the end of the year.”
While minor compared to his battle with China, Trump has imposed tariffs onIndian steel and aluminium and suspended duty-free access for certain goodsin an effort to cut the $25 billion US trade deficit with Asia’sthird-biggest economy.
Under pressure to deliver ahead of his November reelection battle, Trumphas pressed for greater access to the vast Indian market of 1.3 billionpeople for US dairy producers and makers of medical goods.
But Modi, battling to fire up a slowing economy hampered by inflation and awidening budget deficit, has responded with higher tariffs on US goodsincluding $600 million worth of Californian almonds.Eye on China
Arriving on Monday, Trump hailed India and its “tremendously successful”but “very, very tough” Modi at the rally of about 100,000 people inside theworld’s largest cricket stadium in Modi’s home state Gujarat.
The fanfare of the “Namaste Trump” event was recompense for a “Howdy Modi”extravaganza in Houston last year when the two leaders held hands and Trumpcompared the Indian leader to Elvis Presley.
The pair did announce $3 billion in defence deals, including for the saleof naval helicopters, proof of their deepening strategic alliance tocounter the rise of China in the region.
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But behind the bonhomie they remain far apart on a trade deal between theworld’s biggest economy and its second most populous nation, dashingearlier speculation of a possible partial compromise that would have seenIndia lowering tariffs on Harley-Davidson motorcycles and other items.
“Harley-Davidson has to pay tremendous tariffs when they send motorcyclesin here. When India sells motorcycles into the US there is virtually notariff […] That’s unfair,” Trump told a news conference.
“I want reciprocal, it has to be reciprocal,” he said.Communal violence
Trump stopped short of publicly voicing unease about a new citizenship lawthat has raised concerns abroad, including in Washington, about thedirection of India under Modi.
“We did talk about religious freedom. And I will say that the primeminister was incredible. What he told me was that he wants people to havereligious freedom,” Trump said.
Critics say the law forms part of a plan to remould secular India as aHindu nation — something Modi denies — and its recent passage sparked weeksof protests and violence, including in Delhi on Monday and Tuesday.
A standoff between supporters and opponents of the law degenerated intorunning battles between Hindus and Muslims on the northeastern fringes ofthe megacity of 20 million people, leaving at least 20 dead.
Authorities responded with tear gas and smoke grenades, sending inparamilitary security forces, shutting schools and banning assemblies ofmore than four people in the areas affected. -APP / AFP
