U.S. trade representative Greer says deal with India not 'imminent' after Modi-Trump call
Ties between the U.S. and India have been under strain for over a year, and New Delhi faces fresh risk of up to 100% tariffs for continuing to buy Russian oil.
The recent phone call between Indian Prime Minister Narendra Modi and U.S. President Donald Trump did not yield a significant breakthrough on a trade deal between the two nations. According to U.S. Trade Representative Katherine Tai's comments, an agreement is not "imminent". This development is noteworthy given the strained ties between the U.S. and India over the past year, with several trade issues remaining unresolved.
The relationship has been under pressure due to India's refusal to condemn Russia's actions in Ukraine, and its decision to continue purchasing Russian oil. The U.S. and its allies have imposed significant sanctions on Russia, and India now faces the risk of retaliatory measures, including potential tariffs of up to 100% on certain goods. The U.S. has been pressing India to reduce its dependence on Russian energy imports, but New Delhi has so far resisted these calls.
Going forward, market participants will be watching for any signs of progress on the trade front, particularly with regards to India's Russian oil imports. The U.S. and India are set to engage in further discussions, and any concessions from India on this issue could potentially ease tensions and pave the way for a trade agreement. However, given the current geopolitical climate, it remains to be seen whether a deal can be reached in the near term.
Originally reported by cnbc.com. Trade-News adds analysis for finance & markets readers.