Trump Says US Is ‘Doing A Trade Deal With India,’ Calls Modi ‘Tough As Hell’

• “I'm doing a trade deal with India, and I have great respect and love for Prime Minister Modi.” — President Donald Trump.
• According to a Bloomberg News report, Modi reportedly skipped the Association of Southeast Asian Nations (ASEAN) summit in Kuala Lumpur to avoid a meeting with Trump and having a possible discussion on Pakistan.
• India currently faces 50% tariffs on its exports to the U.S., after Trump slapped additional levies for the country’s purchases of Russian oil.

U.S. President Donald Trump said on Wednesday that Washington, D.C., is going to do a trade deal with India, while adding that he has “great respect and love” for Indian Prime Minister Narendra Modi.

The Republican President spoke about the potential deal during the Asia-Pacific Economic Cooperation summit in Gyeongju, South Korea. He also repeated his claim that the U.S. played a key role in the ceasefire between India and Pakistan in May, which India has denied on numerous occasions.

What Did The US President Say?

“I'm doing a trade deal with India, and I have great respect and love for Prime Minister Modi,” Trump said. He also said he spoke with both Modi and Pakistan’s prime minister, Shehbaz Sharif, and threatened to withdraw from trade deals with their respective nations, which helped avert a “nuclear war.”

While Trump and Modi have shared a cordial relationship in the past, the U.S. President’s assertions about the American role in ending the conflict between India and its neighbor have strained it. According to a Bloomberg News report, Modi reportedly skipped the Association of Southeast Asian Nations (ASEAN) summit in Kuala Lumpur to avoid a meeting with Trump and having a possible discussion on Pakistan.

Trump reiterated his respect and admiration for Modi by describing him as “tough as hell” and “the nicest looking guy.” This praise also comes at a time when both countries are working to strengthen economic ties that have been marred by turbulent trade negotiations.

On the market front, retail sentiment on Stocktwits about the iShares MSCI India ETF was still in the ‘neutral’ territory at the time of writing.

Are The US And India Close To A Trade Deal?

India currently faces 50% tariffs on its exports to the U.S., after Trump slapped additional levies for the country’s purchases of Russian oil. Last week, a report by the Indian publication Mint stated that India and the U.S. are on the cusp of finalizing a long-overdue trade agreement that could significantly lower U.S. tariffs on Indian goods from around 50% to 15%-16%. This is contingent on India’s commitment to scaling back its purchases of Russian oil.

The report stated that as part of the proposed deal, India may permit higher imports of non-genetically modified U.S. corn and soymeal. This has been another sticking point in the ongoing negotiations, as India guarded the price-sensitive agricultural and dairy markets.

The agreement could also include a framework for periodic review of tariffs and market access.

While no deal has been formally announced, Indian External Affairs Minister S. Jaishankar met with Secretary of State Marco Rubio earlier this week to discuss bilateral ties.

Also See: Fiserv Q3 Earnings Preview: Spending Trends In Focus, Analysts Warn Of Lower Sales Forecast

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