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PM Modi, Donald Trump Discuss $500 Billion Trade Deal, Defense Ties Amid Tariff Tensions

By 2030, India wants to treble its commerce with the US, according to Prime Minister Modi. He described his meeting with Trump as "good" and a "boost to ties" in a post on X.

PM Modi, Donald Trump Discuss $500 Billion Trade Deal, Defense Ties Amid Tariff Tensions

Indian Prime Minister Narendra Modi met with U.S. President Donald Trump at the White House on February 13, 2025. The discussions centered on enhancing defense cooperation and addressing trade imbalances amid ongoing tariff tensions.

 

Both leaders underscored the importance of strengthening defense ties. The U.S. announced plans to supply F-35 fighter jets to India starting in 2025, marking a pivotal development in bilateral military relations. This move aligns with a ten-year defense cooperation framework to bolster India's defense capabilities.

 

Trade was a focal point of the meeting, with both nations setting an ambitious target to double bilateral trade to $500 billion by 2030. To achieve this, India committed to increasing imports of U.S. oil, gas, and military equipment, potentially positioning the U.S. as India's top energy supplier. Additionally, India is preparing to implement tariff reductions in sectors such as electronics, medical equipment, and chemicals to boost American exports and mitigate trade tensions.

 

Despite these positive developments, President Trump reiterated concerns over India's high tariffs on American goods, emphasizing the need for a reciprocal tariff system to ensure fair trade practices. He highlighted that while the U.S. imposes a 2.5% tariff on imported cars, India levies a 10% tariff on American automobiles, a disparity he deems unfair.

 

The leaders also discussed enhancing security cooperation in the Indo-Pacific region, particularly in response to China's growing influence. They reaffirmed their commitment to the Quad alliance, emphasizing the importance of a free and open Indo-Pacific. Additionally, discussions covered India's ongoing relations with Russia amidst the Ukraine conflict, with President Trump expressing concerns over India's neutral stance.

 

The meeting between Prime Minister Modi and President Trump highlighted the complexities of U.S.-India relations, balancing collaborative initiatives in defense and trade with ongoing challenges related to tariff policies and geopolitical alignments.


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