U.S. Trip of Prime Minister Modi Planned for UNGA in September; Trade Negotiations with Trump on Schedule
In September, Prime Minister Narendra Modi is expected to visit the United States, with a significant meeting at the United Nations General Assembly (UNGA) in New York on the agenda. This visit also includes a planned bilateral meeting with US President Donald Trump.
The current trade issues between India and the United States are a major point of contention, with severe tariff escalations and growing diplomatic tensions at the forefront. The Trump administration imposed sweeping tariffs on Indian exports, initially at 25%, then increased to 50% effective late August, citing India's continued imports of Russian oil and participation in BRICS as key concerns.
India has rejected U.S. claims that it should cease its Russian oil purchases, pointing out that the U.S. and EU continue buying Russian goods. This dispute is part of a broader mistrust, with India viewing the U.S. pressure as opportunistic and its multipolar foreign policy strategy causing concern in Washington.
In response, India has been actively pursuing alternative trade partnerships to mitigate U.S. pressure, including agreements with the UK, UAE, Australia, and the European Free Trade Association. These partnerships collectively provide zero-tariff access for over 90% of tariff lines, reducing dependence on U.S. trade.
Besides the trade disputes, other points of contention in bilateral ties include India's continued purchase of Russian oil, with the White House arguing that these purchases are helping to fund Moscow's ongoing war in Ukraine. India, however, has pushed back strongly against this criticism, accusing Washington of double standards.
The trade tensions are intertwined with broader diplomatic strains, including controversies around conflict mediation claims by Trump and India’s balancing of relations between the West, Russia, and China. The current standoff, with tariffs at 50%, has no resolution in sight, increasing economic strain in India and complicating the bilateral strategic partnership that goes beyond trade to security cooperation.
If the proposed meeting between Modi and Trump goes ahead, it will mark the second encounter between the two leaders in just seven months. During their last meeting at the White House in February, the leaders discussed key trade issues and aimed to address them amid a period of strained ties.
Besides President Trump, Prime Minister Modi is likely to hold high-level discussions with other global leaders, including Ukrainian President Volodymyr Zelenskyy. The UNGA session will be held in New York City in September, with world leaders scheduled to begin arriving in the week commencing 23 September.
As the UNGA approaches, the trade issues between India and the United States continue to loom large, adding a tense backdrop to Modi's visit and any potential dialogue with Trump. The major trade issues include high tariffs on Indian exports, U.S. objections to India’s Russian oil imports and BRICS involvement, threats of secondary sanctions, erosion of trust based on divergent strategic priorities and diplomatic controversies, and India’s active pursuit of alternative trade partnerships.
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