As President Donald Trump announces a budding tariff deal with India, economist Steve Moore weighed in on the matter Thursday on Fox Business.
During a press conference with Indian Prime Minister Narendra Modi, Trump said there is a need to address the excessive tariffs that India imposes on U.S. imports and that he plans to tackle these issues in upcoming negotiations. He also said that exporting U.S. energy and liquefied natural gas could help reduce the trade deficit.
“India is America’s largest trading partner, and that’s true of every single country on the planet. Everyone needs to trade with the United States because we have this massive consumer market,” Moore said. “I’m a free trade guy, as you know, Dagan, but I have to say I’m very intrigued by what Trump is talking about here, where he’s basically saying to these other countries, you know, ‘You lower your tariffs, or we’re going to raise ours.’”
Moore said this approach carries significant risks.
“I believe this strategy is a risky strategy, but I believe it may work. And if it does work, then, believe it or not, we’ll have freer trade around the world because we will be able to export our goods into these countries in every corner of the globe,” Moore said. “And one last point. I know you all know this, but I want to make sure all the viewers understand that the United States has the lowest tariffs in the world. So we’re way down here, and the rest of the world’s up here.”
Trump said that India intends to purchase additional U.S. oil and gas as part of the economic exchanges. That includes potential deals for U.S. combat vehicles and jet engines, as well as American agricultural products and nuclear investments. Trump talked about addressing trade imbalances and enhancing economic cooperation between the two nations.
“We agreed to work together to help build one of the greatest trade routes in all of the history. It will run from India to Israel to Italy and onward to the U.S., connecting our partners, roads, railways and undersea cables. It is a big development,” Trump said.
Featured Image Credit: Gage Skidmore from Surprise, AZ, United States of America
