Denouncing India tariffs, Trump agrees to trade talks

WASHINGTON - US President Donald Trump said on Feb 13 that Indian Prime Minister Narendra Modi had offered to talk about easing tariffs, buying more US oil, gas and combat aircraft, and potential concessions that do not yet end a stand-off on trade.

The offer emerged from the two leaders’ White House talks, just hours after Mr Trump railed against the climate for American businesses in India and

unveiled a road map for reciprocal tariffs

on every country that puts duties on US imports.

“Prime Minister Modi recently announced the reductions to India’s unfair, very strong tariffs that limit us access to the Indian market, very strongly,” Mr Trump said. “And really it’s a big problem, I must say.”

The leaders agreed to work towards a deal to resolve the trade concerns. Such a deal could be done within the next seven months, said India’s Foreign Secretary Vikram Misri after the meeting. A senior Trump administration official said a deal could be reached as soon as 2025.

Some of the leaders’ agreements are aspirational: India wants to increase by “billions of dollars” its purchases of US defence equipment, including fighter jets, and may make Washington the “No. 1 supplier” of oil and gas, Mr Trump said at a press conference with Mr Modi.

And Delhi wants to double trade with Washington by 2030, Mr Modi said. Long-planned cooperation on nuclear energy, also discussed by the leaders, faces ongoing legal challenges.

“We’re also paving the way to ultimately provide India with the F-35 stealth fighters,” said Mr Trump.

Mr Misri, the Indian official, later said the F-35 deal was a proposal at this point, with no formal process under way. The White House did not respond to a request for comment on any deal.

Although Mr Trump had a warm relationship with Mr Modi in his first term, he again on Feb 13 said India’s tariffs were “very high” and promised to match them, even after his earlier levies on steel and aluminium hit India particularly hard.

“We are being reciprocal with India,” Mr Trump said during the press conference. “Whatever India charges, we charge them.”

Mr Modi vowed to protect India’s interests.

“One thing that I deeply appreciate, and I learn from President Trump, is that he keeps the national interest supreme,” Mr Modi said earlier as he sat alongside Mr Trump in the Oval Office. “Like him, I also keep the national interest of India at the top of everything else.”

The two leaders praised each other and agreed to deepen security cooperation in the Indo-Pacific, a thinly veiled reference to competition with China, as well as to start joint production on technologies like artificial intelligence.

Asked before the meeting about the steps India was taking, one source described it as a “gift” for Mr Trump designed to lower trade tensions. A Trump aide, meanwhile, said that the President sees defence and energy sales to India lowering the US trade deficit.

It is not clear whether the case of billionaire Gautam Adani came up in the talks after

his indictment by the US Justice Department in November 2024

over an alleged bribery scheme. Mr Adani hails from Mr Modi’s western state of Gujarat, and his Adani Group runs several key infrastructure projects across the globe.

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

On Feb 13, Mr Modi, irked by a question from a reporter on whether he discussed Mr Adani with Mr Trump, said countries do not meet to discuss such topics.

What Trump wants

Tariffs will continue to dominate the two countries’ relationship, said Mr Richard Rossow, head of the India programme 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 US$45.6 billion (S$61.2 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.

Mr 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.

The US approved the extradition of a suspect in the 2008 extremist attacks in India’s financial capital Mumbai, in which more than 160 were killed, Mr Trump said.

Mr Modi met Mr Elon Musk on Feb 13 at Blair House, where the Prime Minister is staying opposite the White House. Mr Musk is a key Trump ally, and his Starlink company’s

bid to enter the South Asian market

could come up for discussion.

India may prove critical to Mr Trump’s strategy to thwart China, which many in his administration see as the top US rival. India is wary of neighbouring China’s military build-up and competes for many of the same markets.

Mr Modi also worries that Mr Trump could cut a deal with China that excludes India, according to Mr Mukesh Aghi, president of the US-India Strategic Partnership Forum lobbying group.

Mr Trump said on Feb 13 that he hoped to be of help in resolving skirmishes on the India-China border.

Meanwhile, India has continued its ties with Russia as it carries out its war with Ukraine. India has remained a major consumer of Russian energy, for instance, while the West has worked to cut its own consumption since the war started.

“The world had this thinking that India somehow is a neutral country in this whole process,” said Mr Modi. “But this is not true. India has a side, and that side is of peace.” REUTERS