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During a packed 36-hour visit to the U.S. by Indian Prime Minister Narendra Modi, U.S. President Donald Trump expressed mixed sentiments on trade. Within hours, the rhetoric shifted dramatically, with Trump going from criticizing India as a “very hard place to do business” to describing it as a country with which the U.S. would soon finalize “several big trade deals.”
Trump’s tough stance on tariffs took center stage, as he initially slammed India for its high tariff rates, calling it one of the most challenging markets for U.S. businesses. “India charges tremendously high tariffs,” Trump said, adding, “India has the highest tariffs, just about in the world, and it’s a hard place to do business.” However, later in the day, Trump softened his approach, acknowledging Modi’s efforts to reduce tariffs and signaling that the two countries were set to negotiate new terms.
Trump’s Tariff Policy and Trade Deficit Concerns
Trump’s comments about India’s tariffs came as he outlined his “reciprocal tariff” plan. Under this approach, the U.S. would impose tariffs equivalent to those charged by other nations, creating a level playing field for American exports. Trump also pointed out that the U.S. trade deficit with India stood at nearly $100 billion, including services, which he stressed would be addressed in upcoming negotiations.
“Prime Minister Modi and I have agreed to negotiate to address these long-standing disparities,” Trump noted during a joint press conference. Modi, in response, shared that both countries had set a target to double bilateral trade to $500 billion by 2030.
Big Trade Deals on the Horizon
Despite tensions over tariffs, Trump seemed eager to move forward with trade agreements in various sectors. He announced that both countries would soon finalize “several big trade deals,” which would benefit both India and the U.S. The agreements are expected to focus on areas such as defense, energy, and nuclear technology.
Defense Deals: F-35s and Increased Military Sales
In a significant gesture to bolster defense ties, Trump offered India access to cutting-edge military technology, including F-35 fighter jets. He also revealed plans to increase military sales to India by “many billions of dollars” starting this year. These moves reflect growing U.S.-India defense collaboration.
Energy Deals and Nuclear Cooperation
On the energy front, Trump highlighted an agreement aimed at making the U.S. a leading supplier of oil and gas to India. “They need it. And we have it,” Trump remarked, suggesting that increased oil and gas exports would help reduce the U.S. trade deficit with India. Additionally, Trump praised India’s efforts to amend its laws to welcome U.S. nuclear technology, which would provide safe, clean energy and benefit both nations.
A Moment of Humility: Trump Praises Modi’s Negotiation Skills
In a rare moment of humility, Trump acknowledged Prime Minister Modi’s exceptional negotiating abilities, admitting, “He is a much tougher negotiator than me, and he is a much better negotiator than me. There is not even a contest.”
As the two leaders wrapped up their talks, Trump presented Modi with a copy of Our Journey Together, a coffee table book featuring photos from the “Howdy Modi” and “Namaste Trump” events held during Trump’s first presidency. The book came with a personal message from Trump, “Mr. Prime Minister, you’re great.”
With a commitment to addressing trade imbalances and increasing cooperation in multiple sectors, the ongoing U.S.-India partnership appears to be on the cusp of significant growth, despite early trade friction.
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