Advertisement

India’s Modi brings a trade ‘gift’ to talks with Trump

Trump's like-for-like tariffs

Source: White House

Indian Prime Minister Narendra Modi has brought gifts to meet Donald Trump, hoping that concessions on tariffs, fresh business deals and the prospect of co-operation on China can deter a trade war.

The US President welcomed Modi to the White House on Thursday (local time), hours after he unveiled a roadmap for reciprocal tariffs on every country that puts duties on US imports.

It is the latest trade salvo directed at American friends and foes that the White House says will strengthen economic and national security.

India may not be exempt. Trump had a warm relationship with Modi in his first term, but has called India a “very big abuser” on trade and his earlier levies on steel and aluminium hit India particularly hard.

“They’re going to be purchasing a lot of our oil and gas,” Trump said as he met Modi in the Oval Office.

“We’re going to make some wonderful trade deals for India and for the US.”

Before his meeting with Trump, Modi’s team mulled possible promises to Trump, including increased liquefied natural gas, combat vehicle and jet engine purchases, according to Indian government officials who declined to be named.

“One thing that I deeply appreciate, and I learn from President Trump, is that he keeps the national interest supreme,” Modi said as he sat alongside Trump in the White House.

“Like him, I also keep the national interest of India at the top of everything else.”

Indian officials are also looking at possible deals on US agriculture exports to India and investment in nuclear energy, along with tariff cuts in at least a dozen sectors, including electronics, medical and surgical equipment, and chemicals.

It was a “gift” for Trump, said one source, who declined to be named as they previewed a private meeting.

US and Indian officials were also continuing with talks on a bilateral trade deal, with a Trump administration official saying they hoped for an agreement this year.

“We have some very big trade deals to announce in the very near future,” Trump said.

The Trump aide said the President saw defence and energy sales to India lowering the US trade deficit.

The case of billionaire Gautam Adani may come up in the talks after his indictment by the US Justice Department in November over an alleged bribery scheme.

Adani hails from Modi’s western state of Gujarat and his Adani Group runs key infrastructure projects across the globe.

Opponents and critics often allege the meteoric rise of Adani’s ports-to-energy empire was partly due to his close relations with, and favourable treatment by, administrations run by Modi’s BJP and its allies. The duo have repeatedly denied impropriety.

But it will be tariffs that are front and centre, said Richard Rossow, head of the India program at the Centre for Strategic and International Studies, a Washington think tank.

“It’s going to be a boxing match,” he said. “I think India is willing to take a few hits, but there’s a limit.”

The US has a $US45.6 billion ($A72.2 billion) trade deficit with India. Overall, the US trade-weighted average tariff rate has been about 2.2 per cent, according to World Trade Organisation data, compared with India’s 12 per cent.

Trump wants more help from India on unauthorised immigration. India is a major source of immigrants to the US, including a large number in the tech industry on work visas and others in the US illegally.

-AAP

Advertisement
Stay informed, daily
A FREE subscription to The New Daily arrives every morning and evening.
The New Daily is a trusted source of national news and information and is provided free for all Australians. Read our editorial charter.
Copyright © 2025 The New Daily.
All rights reserved.