In a significant diplomatic meeting at the White House last Thursday, U.S. President Donald Trump hailed Indian Prime Minister Narendra Modi as “a great friend of mine” while also making it clear that India would not be exempt from the higher tariffs he has begun imposing on U.S. trade partners.
This meeting marks Modi’s first visit to Washington since Trump assumed office as the 47th U.S. President.
Despite the warm personal rapport, Trump did not hold back in addressing the trade imbalance between the two nations, criticizing India’s import levies as “very unfair and strong.” Labeling India as the “tariff king,” Trump reiterated his stance on ensuring fairness in trade relations.
Trump & Modi: Trade and Economic Discussions
At a joint press conference, Trump underscored his administration’s commitment to reducing the U.S. trade deficit with India, which currently stands at approximately $50 billion in India’s favour.
In 2023, bilateral trade in goods and services between the two nations reached $190.1 billion, with U.S. exports to India totaling around $70 billion and imports reaching $120 billion, according to India’s External Affairs Ministry.
To address this imbalance, Trump proposed an increase in U.S. energy exports to India and hinted at a potential major trade agreement between the two countries, expected to be finalized later this year.
Modi, in turn, expressed his willingness to strengthen economic ties and emphasized his commitment to making India a more attractive destination for business and investment.
India has already taken steps to lower tariffs on certain American products, including a reduction in import duties on Harley-Davidson motorcycles from 50% to 40%.
Additionally, in 2023, India eliminated retaliatory tariffs on U.S. almonds, apples, chickpeas, lentils, and walnuts, signalling its interest in fostering better trade relations with Washington.
Security and Defense Cooperation
Beyond trade, Trump and Modi also discussed defense cooperation, with Trump announcing plans to increase U.S. military sales to India by “many millions of dollars.” This move could ultimately pave the way for India to acquire the highly coveted F-35 stealth fighter jets.
In a significant development on counterterrorism, Trump confirmed that the U.S. would extradite a key plotter behind the 2008 Mumbai attacks, likely referring to Tahawwur Hussain Rana, who was convicted in the U.S. in 2011 for planning an attack on a Danish newspaper.
“He’s going to be going back to India to face justice,” Trump stated, adding that more such extraditions could follow.
Geopolitical Alignment and India’s Stance on Ukraine
During the discussions, Modi addressed concerns about India’s foreign policy, particularly regarding the Russia-Ukraine conflict. While India has been perceived as maintaining a neutral stance, Modi clarified that India’s position is firmly aligned with peace. He lauded Trump’s diplomatic efforts in engaging both Russian and Ukrainian leaders to de-escalate tensions.
Immigration Talks and Deportation Measures
Another key topic during the meeting was immigration. Trump reaffirmed his administration’s crackdown on illegal immigration, highlighting that over 725,000 Indians are currently in the U.S. without legal authorization—the third-largest unauthorized immigrant population after Mexico and El Salvador.
As part of this effort, the U.S. recently deported 104 undocumented Indian migrants on a military plane, marking the first such repatriation under Trump’s presidency. Modi assured cooperation, stating, “Any verified Indian who is in the U.S. illegally, we are fully prepared to take them back to India.”
Diplomatic Engagements and Business Relations
Prior to his meeting with Trump, Modi held discussions with U.S. National Security Adviser Mike Waltz and SpaceX founder Elon Musk, a top Trump administration official. The meeting with Musk sparked questions regarding whether the billionaire participated as a government representative or as a business leader.
Trump further clarified Musk’s meeting with Modi, stating, “No, I would assume he met with him primarily in his capacity as a businessman running a company.”
Looking Ahead Modi’s visit marks a significant moment in Indo-U.S. relations, positioning both leaders to work towards a more balanced trade partnership while navigating complex geopolitical and security concerns. As negotiations continue, the world watches closely to see how these two influential leaders shape the future of U.S.-India relations.