NEW DELHI (AP) — Donald Trump’s return to the White House has made many countries anxious and recalculating where they stand with the U.S., but India appears to be welcoming the change that may embolden nationalist leaders like Prime Minister Narendra Modi.
“I know today a lot of countries are nervous about the U.S., let’s be honest about that,” India’s External Affairs Minister Subrahmanyam Jaishankar said over the weekend. India was “not one of them.” A call from Modi “was among the first three calls, I think, that President (elect) Trump took," he added.
A second Trump presidency is likely to play out in New Delhi’s favor, experts say, especially as Modi seeks to reset India’s relationship with the West after recent frictions over his refusal to join sanctions against Russia or condemn its 2022 full-scale invasion of Ukraine. Modi has also been criticized over India's democratic backsliding.
“Trump’s victory means that the Indian policies that have put New Delhi at odds with the West … will no longer be a cause of concern for Washington,” said Michael Kugelman, South Asia director at the Wilson Center.
There could be ruptures on trade, immigration and climate change goals — but on balance, “the return of Trump means that India’s relations with the West – and specifically its most powerful country — will get a boost,” he added.
Modi has sought to cast India as a rising global player with a fast-growing economy that can counter China. But critics say his authoritarian politics and right-wing Bharatiya Janata Party have deeply polarized the country with minorities increasingly marginalized and the right to free speech and press under attack.
When President Joe Biden honored Modi with a state visit last year, he walked a tightrope as activists and groups pressured him to confront Modi over his human rights record. Still, the two leaders rolled out new business deals on defense and technology.
Such concerns won't be an issue with Trump, said Uday Chandra, assistant professor of government at Georgetown University in Qatar. “He is a refreshing reset from the Indian perspective … he is much more transactional.”
Trump, long an open admirer of Russian President Vladimir Putin, is also likely to be more understanding of India’s strategic partnership with Moscow, which dates back to the Cold War, its record purchases of Russian crude, and its refusal to pick a side in the war in Ukraine. “This was the real sort of thorn in India-U.S. relations over the past two years … but with Trump, I don’t see this being an issue,” Chandra said.
One hot-button issue is trade. In his first term, trade differences between the two countries came to the fore with Trump calling India the “tariff king” over disagreements on farm goods, Harley Davidson motorcycles and medical devices. In 2019, he canceled the country's special trade privileges and India responded by slapping tariffs on more than two dozen U.S. goods.
This time, Trump wants to impose a “universal” tax of 10% or 20% on all imports and raise tariffs on Chinese goods to 60%. India, which counts the U.S. as its second-largest trading partner, won't be an exception.
“New Delhi will have to do more than just tinkering with its policies to deal with Trump’s emphasis on fair trade,” said C Rajamohan, a professor at the Institute of South Asian Studies in Singapore.
Immigration could turn into a sore point if Trump attempts to also curb skilled migration. Indians have often been the largest group applying for the H1-B work visa but Trump had called the visa program “very bad” and “unfair” for U.S. workers.
Progress on climate change and clean energy could also be hit.
“India and the U.S. have done quite a lot on this front over the past four years — but this is something that could unravel because a Trump administration is more aligned with the fossil fuel industry than with green technology,” said Milan Vaishnav, South Asia Program director at the Carnegie Endowment for International Peace.
Both Trump and Modi embody strongmen tactics, count on an impassioned support base and have ramped up polarization to consolidate votes. And unlike liberal leaders in the West, Trump doesn’t view Modi’s policies at home problematic – or even relevant, said Kugelman.
“They’re both ardent nationalists committed to making their nations stronger at home and abroad,” he added.
Analysts also point to the personal bond between the two. When Trump visited India in 2020, Modi threw him an event in the world's largest cricket stadium.
The year before that, Trump likened Modi to Elvis Presley for his crowd-pulling power at a joint rally in Texas. In his congratulatory post to Trump on X last week, Modi shared photos of the two leaders hugging, smiling and holding hands.
“There’s a bromance between the two,” said Chandra. "But they're also united by a shared worldview — that we are in a post- liberal world and that liberalism as an ideology for conducting global politics is no longer viable. That’s as true in India as it is in America.”
FILE - U.S. President Donald Trump, left and Indian Prime Minister Narendra Modi embrace after giving a joint statement in New Delhi, India, Feb. 25, 2020. (AP Photo/Manish Swarup, File)
FILE - President Donald Trump and Indian Prime Minister Narendra Modi walk around NRG Stadium waving to the crowd during the "Howdy Modi: Shared Dreams, Bright Futures" event, Sept. 22, 2019, in Houston. (AP Photo/Evan Vucci, File)
FILE - Prime Minister Narendra Modi and President Donald Trump, right, shake hands after introductions during the "Howdi Modi" event, Sept. 22, 2019, at NRG Stadium in Houston. (AP Photo/Michael Wyke, File)
FILE- President Donald Trump and Indian Prime Minister Narendra Modi, left, share a laugh together during a bilateral meeting at the G-7 summit in Biarritz, France, Aug. 26, 2019. (AP Photo/Andrew Harnik, File)
NEW YORK (AP) — U.S. stocks are drifting at the open of trading as the market’s big burst following Donald Trump’s election continues to cool. The S&P 500 added 0.1% in early Thursday trading. The Dow Jones Industrial Average rose 121 points, and the Nasdaq composite gained 0.2%. The Walt Disney Co. helped lead the market after reporting a stronger profit than analysts expected. ASML, a major supplier to the global chip industry, also gave some encouraging signals for semiconductor sales. But Tesla was on track for just its second loss since Election Day and was helping to keep indexes in check.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
(AP) — Markets on Wall Street rose modestly in early trading Thursday as more corporate earnings are released ahead of another inflation update from the U.S. government.
Futures for the S&P 500 were up just 0.1% before the bell, while futures for the Dow Jones Industrial Average rose 0.2%.
Disney shares jumped more than 6% after it posted stronger profits for the fourth quarter than Wall Street expected. Disney's results were boosted by big box office receipts from Pixar's “Inside Out 2” and Marvel's “Deadpool & Wolverine," the company said.
Subscribers to its streaming service, Disney+, also came in higher than expected and the entertainment behemoth raised its 2025 guidance ahead of analysts' projections.
Tapestry shares climbed 7.3% after the luxury fashion company said it's terminating its merger with Capri, another luxury brand owner. The companies agreed to a $8.5 billion deal in August 2023 to unite the makers of Coach and Michael Kors handbags, but the tie-up has faced numerous challenges, including an FTC lawsuit to block the deal on antitrust grounds.
Capri shares tumbled 5.7%.
Later Thursday, the government reports on inflation at the wholesale level.
On Wednesday, U.S. stocks drifted to a mixed finish after the latest inflation update boosted hopes that a cut to interest rates next month will bring more help for the economy.
U.S. consumer inflation accelerated in October, but an underlying measure called “core inflation” did not rise. Such core inflation can be a better predictor of future trends, economists say, so the figures added to expectations for more help from the Federal Reserve.
T rump’s victory in the presidential election has raised uncertainty over the Fed’s future course. The U.S. central bank began cutting interest rates from their two-decade high in September to keep the job market hummin g after bringing inflation nearly all the way down to its target of 2%. It cut again earlier this month, and traders now see an improved probability of roughly 80% for a third cut at its meeting next month, according to data from CME Group.
Economists say Trump’s preferences for lower tax rates, higher tariffs and less regulation could ultimately lead to higher U.S. government debt and inflation, but also bring faster economic growth.
While lower interest rates can give a boost to the economy and to prices for investments, they can also fuel inflation.
In Europe at midday, Germany's DAX surged 1.3% and the CAC 40 in Paris advanced 1%. Britain's FTSE 100 was 0.4% higher.
The dollar was trading at 155.95 Japanese yen, up from 155.49 yen, reflecting expectations that the greenback will gain against other currencies under policies anticipated with the incoming administration of President-elect Donald Trump.
Japan's Nikkei 225 index fell 0.5% to 38,535.70 and the Kospi in South Korea gained 0.1% to 2,418.86. Australia's S&P/ASX 200 gained 0.4% to 8,224.00.
Chinese markets tumbled, with the Hang Seng in Hong Kong falling 2% to 19,435.95. The Shanghai Composite index lost 1.7% to 3,379.84.
Bangkok's SET lost 0.2% and Taiwan's Taiex fell 0.6%, while the Sensex in India shed 0.2%.
A stronger dollar tends to put strain on other economies, noted Stephen Innes of Capital Economics. The Thai baht has also weakened against the dollar since the U.S. election, as has the Chinese yuan, or renminbi, which now stands at 7.2245 per dollar and was trading at about 7 yuan per dollar in early October.
“For Asia, particularly those economies closely linked to China, the dollar's dominance is poised to become an economic wrecking ball,” he said in a commentary. “Countries with hefty USD-denominated debt are bracing for impact,” he added.
In the crypto market, bitcoin was up less than 1% at $91,206, after crossing above $93,000 as cryptocurrencies generally soared. Trump has embraced cryptocurrencies, pledging to make the U.S. the crypto capital of the world.
Dogecoin, a cryptocurrency that’s been a favorite of Tesla’s Elon Musk, also gave up some of its recent gains, falling 1.6% to 39 cents. Trump named Musk as one of the heads of a “Department of Government Efficiency,” or DOGE for short.
In other dealings early Thursday, U.S. benchmark crude oil rose 42 cents to $68.85 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, added 40 cents to $72.68 per barrel.
The euro fell to $1.0538 from $1.0587.
FILE - A sign marking the intersection of Broadway and Wall Street is shown in New York's Financial District on Oct. 30, 2024. (AP Photo/Peter Morgan, File)
Currency traders work at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Nov. 14, 2024. (AP Photo/Ahn Young-joon)
A currency trader passes by a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Nov. 14, 2024. (AP Photo/Ahn Young-joon)
Currency traders work at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Nov. 14, 2024. (AP Photo/Ahn Young-joon)