'America First' vs 'Make in India' as Modi hosts Trump

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'They've been hitting us very, very hard for many, many years,' Trump said of India ahead of the 36-hour trip.

Trade ties between the United States and India have long been problematic but under"America First" President Donald Trump and"Make in India" Prime Minister Narendra Modi, they have worsened.

Here, AFP looks at the main issues of contention between the two countries on trade, which hit almost $145 billion in 2018, with the US deficit of $25 billion -- much to Trump's annoyance:India has long had a penchant for protectionism. Its import tariffs are among the world's highest. Under Modi, facing slowing growth, accelerating inflation and a widening budget deficit, this hasn't changed.

In its recent budget, the right-wing government raised tariffs on items such as shoes, children's tricycles and furniture, irking Washington which cancelled a visit by trade envoy Robert Lighthizer, reports said. New Delhi's actions"have made the protectionism concerns in India even greater", a senior US official said ahead of Trump's arrival.However, many of India's recent moves have been in response to actions by the Trump administration, starting with its 2018 decision to impose tariffs on steel and aluminium from India and other countries.

The US wants to sell more medical devices like stents to India while US dairy farmers -- a key voter base for Trump ahead of his re-election push in November -- want greater access for their products.

 

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