Trump says he has 'great' relations with Modi, India will cut tariff
New York, Oct 1 : United States President Donald Trump said on Monday that he has a "great" relationship with Prime Minister Narendra Modi who has told him that India is going to reduce substantially the tariffs on imports from the US.
He said that "tariff king" India on its own has reached out to the US to make a trade deal, without Washington calling New Delhi for negotiations.
He was speaking at a White House news conference on the revised North American Trade Agreement with Canada and Mexico -- a landmark deal that fulfills one of his election promises.
Answering a question from a reporter, he said, "I have spoken Prime Minister Modi and he is going to reduce them (tariffs) very substantially."
He added, "My relationship with India is great, with Prime Minister Modi is great. And they are going to start doing a lot."
Scoring a domestic political point, he asserted that as in the case of the NAFTA and and other trade issues, none of the previous presidents or trade representatives had spoken to India about the high tariffs.
He quoted Modi as telling him, "Nobody every spoke to me" about the high tariffs.
"They (India) have called us to make a deal, we didn't even call them; they called us to make a deal, which is like shocking to people," he added.
Trump explained that he called India a "tariff king" because "it charges us tremendous tariffs."
He cited the example Harley Davidson motorcycles, which would resonate with bikers who are a section of his electoral base, saying that India charged 100 per cent duties on it.
He said, "That is so high that it is like barrier, in other words who is going to buy it if it costs you so much."
"Now they have reduced that substantially, but it is still too high," he asserted.
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Gold, silver soar as US-Iran deal hopes lift bullion demand
New Delhi (PTI): Gold prices rebounded by Rs 2,900 to Rs 1.55 lakh per 10 grams in the national capital on Wednesday, while silver climbed to Rs 2.54 lakh per kilogram as easing geopolitical tensions triggered a pullback in oil rates, boosting demand for precious metals.
According to the All India Sarafa Association, the yellow metal of 99.9 per cent purity jumped by Rs 2,900, or nearly 2 per cent, to Rs 1,55,400 per 10 grams (inclusive of all taxes) from Tuesday's closing level of Rs 1,52,500 per 10 grams.
Traders attributed the surge in bullion prices to reports that Washington and Tehran are close to finalising a framework agreement to end months of conflict, raising the prospects of smoother flows through the Strait of Hormuz and easing inflation concerns tied to energy markets.
"Gold rallied strongly on Wednesday as easing geopolitical tensions triggered a sharp reversal in key macro drivers that had recently pressured precious metals," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.
Silver prices also advanced for the third straight session by rising Rs 3,500, or 1.4 per cent, to Rs 2,54,500 per kg (inclusive of all taxes). The metal had settled at Rs 2,51,000 per kg in the previous session, as per the Association.
"The prospect of a diplomatic breakthrough triggered a steep decline in oil prices and the US dollar, easing concerns about inflation while boosting demand for precious metals," Gandhi said.
Globally, spot gold increased by USD 106.15, or 2.33 per cent, to USD 4,663.70 per ounce while silver gained USD 3.40, or 4.68 per cent, to USD 76.24 per ounce.
"Gold witnessed a sharp rally as markets reacted positively to reports that the US and Iran are moving closer to a one-page agreement framework aimed at ending the conflict," Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said.
Despite strong international gains, rupee strength limited the upside in domestic gold prices. The market is now highly focused on final confirmation and execution of the proposed deal, he added.
Any negative surprise or breakdown in negotiations could trigger a sharp sell-off in gold, while a successful agreement and sustained ceasefire could push the bullion prices higher in the near-term, Trivedi said.
