Analysts Say Tariffs and China’s Role Will Shape Geo-Political Dynamics at Trump-Modi Meeting
President Donald Trump and India’s Prime Minister Narendra Modi will meet this week for the first time since Trump returned to the White House last month.
NEW DELHI—India’s Prime Minister Narendra Modi is set to meet with U.S. President Donald Trump in Washington on Feb. 12–13. It will be the first meeting between the two leaders since Trump returned to the White House last month.
Amid a reignited U.S. trade war with Beijing, analysts expect that tariffs and China will be central to the meeting’s discussions.
Last week, the United States imposed a 10 percent tariff on Chinese imports. In retaliation, Beijing announced new tariffs on American imports, including 15 percent on coal and liquefied natural gas and 10 percent on crude oil and farm equipment.
The developments generated buzz in Indian media, with Indian analysts opining that the U.S.–China trade conflict could further India’s interests.
Indian media outlets, including the Financial Express, India’s state media DD news, the Times of India, and Asian News International (ANI) predicted that U.S. tariffs on China could benefit Indian exporters by generating a substantial increase in orders.
As a United States–China trade war flared during Trump’s first term as president, Indian exports to the United States rose from $57 billion to $73 billion, according to government sources cited by Indian media.
Trade developments are stirred by geopolitics, analysts said, and thus, much is expected from Trump–Modi’s meeting.
“Of course, there will be discussions on China and its trajectory as well as mutual concerns,” according to Anil Trigunayat, a former Indian diplomat and a distinguished fellow at the New Delhi-based Vivekananda International Foundation.
When it comes to U.S.–China relations, Trump appears to be taking a different bilateral approach, Trignunayat said.
India–United States relations are guided by a “global comprehensive strategic partnership,” he said, and he expects an in-depth exchange of views between Modi and Trump this week.
India’s budget this month cut average import tariff rates from 13 percent to 11 percent on several items, besides reducing taxes on high-end bikes and luxury cars. India is also reviewing surcharges on more than 30 items, including luxury cars and solar cells.
Shekhar Sinha, chairman of the board of trustees of the New Delhi-based India Foundation, told The Epoch Times that as the two leaders focus on their respective countries’ interests, the tariff relief that India will provide to the United States is key to negotiations.
S. D. Pradhan, India’s former deputy national security adviser, told The Epoch Times the revived United States–China trade fight has “certainly” added to trade dynamics between the two countries. The trade fight provides an opportunity for India to export items on which the United States has increased tariffs for Chinese exporters, he said.
“The Modi–Trump meeting would be crucial in this respect. India needs to develop an effective strategy for a long-term agreement for export of Indian products to the U.S.,” said Pradhan.
He noted that the United States imports consumer goods, automobile parts, pharmaceuticals, and medical equipment from China, and textiles from Bangladesh, which is currently in turmoil. Those products could be supplied by India, he said.
“Besides, [Indian] refineries are working well, ” he added. “These can be utilized for the U.S.”
Other China Factors
While Indian exporters will benefit from the trade war between Washington and Beijing, China will continue to be a factor in the relationship between the United States and India in other ways as well.
China’s expansionism in the Indo-Pacific and the risk of critical technology falling into Chinese hands will be a topic of discussion between Trump and Modi,… [end of content]