The Intelligence from The Economist Love match: Modi-Trump’s tariffs tussle
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Feb 14, 2025 
Kira Khuyu, India correspondent for The Economist, discusses the complex dynamics of India-US relations amid tariff disputes. Leo Marani, Asia correspondent, sheds light on how geopolitical tensions are affecting air travel safety and routes. John Fassman, Senior culture correspondent, celebrates the 50th anniversary of Saturday Night Live, highlighting its cultural impact and evolution in political satire. Together, they explore how these elements intertwine in today's global landscape.
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Challenges to the Partnership
- Despite their friendship, Trump's reciprocal tariff policy impacts India significantly.
- They face challenges regarding trade, immigration, and defense, testing their relationship.
Economic and Political Influence of Indian Americans
- The US and India are important trading partners, with trade doubling to almost $200 billion in the last decade.
- The 5 million strong, highly educated Indian-American diaspora contributes significantly to the US economy and is gaining political influence.
India's Trade Strategy
- India, anticipating Trump's tariff stance, prepared for potential trade disputes.
- Modi shrewdly used Indian companies' commercial gestures, like increased oil purchases, to improve relations.