Indian Prime Minister Narendra Modi, left, and U.S. President Donald Trump speak during a bilateral meeting in Biarritz, France, on Aug. 26, 2019, on the third day of the annual G-7 summit. The two countries are close to a short-term trade deal, but a long-term pact is an entirely different proposition.
The United States' trade war with China grabs all the headlines, but U.S. President Donald Trump is also bearing down on another major Asian economy: India . In June, Trump accused the Indian government of failing to provide "equitable and reasonable market access" and stripped New Delhi of its benefits under the Generalized System of Preferences (GSP), which enables India to export certain goods at a reduced tariff rate. Indian Prime Minister Narendra Modi's administration retaliated by slapping tariffs on 28 U.S. goods. Though the actions fueled speculation of an imminent U.S.-India trade war, the two sides are now reportedly negotiating a partial trade deal under which Washington will reinstate New Delhi's GSP benefits in exchange for concessions on market access and medical devices, among other areas.
