US-India near deal to cut tariffs as Trump says China meeting may not happen

By Omodele Adigun

The US and India are nearing a trade deal which could see tariffs on New Delhi cut by 15-16% from 50%, according to a report in the Mint.

President Trump hiked tariffs on India in August over New Delhi’s purchase of Russia oil. Trump accused India of aiding the war in Ukraine by purchasing oil from Russia.

At the same time, India’s President Modi may agree t reduce the countries purchase of Russian oil. Trump claimed on Tuesday that he and Modi had spoken and India has agreed to wind down its purchase of oil from Moscow.

Trump predicted on Tuesday that a upcoming meeting between the US and China’s leader Xi Jinping would “yield a good deal” on trade but also said at the same time that the meeting may not happen.

“I have a good relationship with President Xi, I expect to be able to make a good deal with him,” Trump said.

Trump floated a list of demands for China, citing rare earths, fentanyl, and soybeans as his top issues to address with Beijing at the negotiating table and before the fragile tariff and trade truce between the world’s largest economies expires.

“I don’t want them to play the rare earth game with us,” Trump said on Air Force One on Sunday.

In a move that analysts said was aimed squarely at China, Trump and Australian Prime Minister Anthony Albanese on Monday signed a deal that the White House said would help supply the US with the critical minerals.

Last week, Trump said threatened high tariffs on Chinese goods were “not sustainable,” easing fears of further trade escalation between the countries and helping boost stocks.

Treasury Secretary Scott Bessent has said the countries will hold talks later this week, and Trump and Chinese President Xi Jinping are scheduled to meet later this month, even as Trump has mused about whether such a meeting will actually happen.

The US and China have seen their fragile trade relationship wobble further in recent weeks, with Trump confirming last week that the countries are in a trade war.

China accused the US last week of causing “panic” over Beijing’s export controls on rare earth materials, according to a report in China’s state newspaper, the Global Times.

Trump said the US would impose an additional 100% tariff on Chinese goods starting on Nov. 1 over Beijing’s plan to impose new export controls on rare earth minerals.   (Yahoo Finance)