US says 'golden age' of US-India ties ahead as Trump's April 2 tariff deadline looms

The TOI correspondent from Washington: Predicting that a "golden age" for ties between US and India is coming up ahead, the Trump administration is giving out an "all is well" signal despite the failure of the two countries to close out a bilateral trade agreement (BTA) hours ahead of the April 2 Trump deadline of reciprocal tariffs.

Just a week into his job, the US Deputy Secretary of State and the country's second ranking diplomat Christopher Landau reached out to India's foreign secretary Vikram Misri over the weekend to talk trade and other issues even as delegations from the two countries were hashing out details of a BTA to avert the sting of Trump's universal reciprocal tariffs, with a possible exception or deferment carved out for New Delhi.

Even as a delegation led by Assistant U.S. Trade Representative Brendan Lynch was headed back after four days of intense negotiations where the two sides narrowed gaps but did not close out a deal, Trump, after calling out India as "one of the highest tariffing nations in the world," said "it's going to work out very well" with New Delhi, with complimentary remarks about Prime Minister Modi.

Landau brought a similar personal touch, posting warm, fuzzy photos of a family visit to India, saying, "I fully expect this to be a golden age for relations, and will always cherish memories of a family trip there a decade ago. I hope to return soon!"

"India is one of the world’s great civilizations, and an important partner for the US in both the political and commercial spheres—each country has much to offer the other," Landau said, talking of his phone call with Misri to discuss issues of mutual concern, including "repatriation challenges" -- a reference to US efforts to deport thousands of undocumented Indians.


Although Landau did not elaborate on the wrinkles, a state department readout said he thanked Misri for India’s assistance addressing illegal immigration to the U.S and asked New Delhi for continued cooperation on this issue. India has agreed to take back verified illegal immigrants but expressed concern over the strong-arm methods employed on deportation flights while also seeking action against human trafficking cartels that entice prospective immigrants with false promises.

The state department also said Landau and Misri discussed "ongoing efforts" to reduce barriers to achieve a fair and balanced bilateral trade relationship, strengthen collaboration in defense and technology, and boost security and prosperity throughout the Indo-Pacific region, suggesting the two sides took a whole body approach to ties that PM Modi recommended.

India is understood to have made significant concessions in the talks, agreeing to cut tariffs on more than half of U.S. imports, valued at over $23 billion, including on farm products, medical devices, and industrial goods, while proposing a phased approach to opening up on sensitive items such as wheat, maize, meat, and dairy.

Whether the generic concessions -- pending virtual talks over the next few weeks on specific sectors and items -- are enough to mollify the mercurial US President to carve out an India exception will be known in the coming 48 hours. In some interviews, Trump has said there will be no exceptions.

The issue with India is complicated by New Delhi's stodgy refusal to move quickly on some farm products, notably dairy, where India is not only the world's largest milk producer with a robust domestic industry but also has strict import regulations due to religious considerations -- for e.g., requirements that animals not be fed ruminant-derived feed).

While this is a dampener on states like Wisconsin (America's biggest dairy state which has a key election coming up Tuesday), some of New Delhi's previous concessions, notably with import of almonds and apples, benefit Democratic governed states (California and Washington) that Republicans have no chance of winning. India subsequently lubricated matters by keeling over on bourbon (from Kentucky, a heavily Republican state), but the US is demanding more good cheer from New Delhi.