Why Trump's India policy is working
A little over 18 months into the second Trump administration, the imposition of tariffs on India and the administration’s renewed engagement with Pakistan have been interpreted by many analysts as signs of a more turbulent bilateral relationship.
TL;DR
- India has amended its foreign trade policy to prohibit imports produced using forced labor, aligning with U.S. supply chain standards.
- India reduced tariffs on U.S. bourbon whiskey and launched bilateral trade agreement negotiations covering various U.S. concerns.
- India did not retaliate against U.S. tariffs but offered to eliminate or reduce tariffs on a significant portion of U.S. imports.
- India has shifted its energy policy to stop purchasing Russian oil and increased purchases of U.S. LNG and liquefied petroleum gas.
- India passed the SHANTI Bill, easing supplier-liability for nuclear cooperation and opening doors for U.S. investment in nuclear technology.
- Defense cooperation has deepened, with India purchasing U.S. Javelin missiles, Excalibur munitions, and GE F404 engines, and clearing acquisitions of P-8I aircraft.
- The Indian Coast Guard enforced U.S. sanctions by seizing three tankers involved in moving sanctioned Iranian oil.
- The U.S.-India economic relationship has become more balanced, with U.S. exports to India rising and imports falling, narrowing the goods deficit.
- Indian conglomerates have made significant investments in the U.S., with commitments exceeding $20.5 billion at the SelectUSA summit.