There are expectations that a trade agreement between the United States and India will be reached soon.
US President Donald Trump and Indian Prime Minister Narendra Modi are meeting and talking at the White House. Photo by Reuters Yonhap News
According to Bloomberg and other sources on June 2 (local time), US Secretary of Commerce Howard Lutnick stated at the US-India Strategic Partnership Forum held in Washington, DC, that "an agreement between the United States and India will be seen in the near future."
Secretary Lutnick explained, "The two countries are negotiating to lower tariffs to a reasonable and appropriate level in order to become excellent trade partners," adding, "The tariff suspension ends early next month, and the sooner we reach an agreement, the more favorable the terms will be."
However, Secretary Lutnick also noted, "Actions such as the Indian government's purchase of Russian military equipment have displeased the United States," and added, "The Indian government is also responding to this specifically and directly."
India is the world's largest arms importer and has historically purchased the most weapons from Russia. The United States is India's largest trading partner, and as of last year, India recorded a surplus of $45.7 billion (approximately 63 trillion won) in trade with the United States.
US President Donald Trump stated during the last presidential election that "India is a very big villain in trade" and that he would "address the imbalance through tariffs."
After the launch of the second Trump administration, India began lowering tariffs on US goods, and Indian Prime Minister Narendra Modi also promised at the White House to expand imports of US-made weapons and to conclude a trade agreement within the year.
It is reported that the United States is demanding that India apply virtually "zero tariffs" to US products.
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