As former U.S. Ambassador to India, Kenneth Juster, looks ahead to a potential second term for President Donald Trump, he predicts that the relationship between India and the U.S. will continue to strengthen, albeit with some challenges along the way. In a recent exclusive interview with The Hindu, Juster, who served in India from 2017 to 2021, pointed out that while the bilateral ties are likely to deepen, India should brace itself for increased tariffs and a renewed push for a Free Trade Agreement (FTA) under Trump’s leadership.
Juster, who previously held a role in the U.S. Department of Commerce, noted that Trump’s first term and campaign rhetoric strongly indicate that the second term will see a continuation of robust efforts to solidify U.S.-India relations. However, some ongoing trade and policy disputes could resurface, particularly concerning tariffs, market access, and sectoral challenges.
One of the key areas of contention, according to Juster, will be the tariffs imposed by the U.S. on various goods. While the strengthening of bilateral ties is expected, the push for India’s cooperation on economic matters, such as agricultural exports and IT equipment, could lead to increased pressure on India to meet U.S. demands. The trade imbalance, particularly in sectors like medical devices and agricultural exports from the U.S. to India, is a critical point of friction.
During Trump’s first term, the U.S. revoked India’s Generalized System of Preferences (GSP) status, a move that impacted Indian exporters. Additionally, the Trump administration’s policy on Iran forced India to halt its oil imports from the Middle Eastern nation, a decision that had significant geopolitical and economic implications.
Despite these challenges, Juster remains optimistic about the trajectory of India-U.S. relations. He believes that the two nations share many common interests, particularly in defense, counterterrorism, and regional security. However, he also warned that disagreements over trade policies and the Iran issue could continue to test the partnership.
As the U.S. gears up for a potential second term under Trump, the future of U.S.-India relations will likely hinge on how these sensitive issues are managed. For India, navigating the complex terrain of trade relations, tariff hikes, and policy differences will require careful diplomacy, especially as the U.S. pushes for deeper economic integration through mechanisms like a Free Trade Agreement.
The next few years will be crucial for India as it seeks to balance its economic and strategic interests with the evolving dynamics of its relationship with the United States. The road ahead may not be smooth, but the enduring partnership between the two countries remains a cornerstone of both nations’ foreign policy agendas.
