WASHINGTON — President Donald Trump is set to meet with Indian Prime Minister Narendra Modi on Thursday amidst ongoing discussions surrounding trade and tariffs. Modi has expressed admiration for Trump, likely as a strategy to mitigate the tariffs imposed by the new administration on various nations shortly after taking office.
However, just hours before their meeting commenced, Trump enacted increases on U.S. tariffs to align with the import tax rates of other countries, impacting numerous American trading partners, India included.
Modi, who leads a nationalist agenda, has spent time before his arrival in Washington emphasizing the positive rapport he enjoys with Trump from the latter’s previous term. The Indian Prime Minister is eager to strengthen ties with the U.S. and the West, especially following a cool period in relations, exacerbated by Modi’s reluctance to criticize Russia regarding its conflict in Ukraine.
The Indian leader’s visit to the U.S. comes in the wake of his party’s significant success in recent state elections in India’s federal territory, including New Delhi. Prior to leaving for Washington, Modi noted that this trip would serve as a platform to “deepen our partnership” across crucial sectors such as technology, trade, defense, and energy.
Despite the hopeful intentions, the meeting is unlikely to be without friction. Trump has previously enacted tariffs on China, and he has indicated more tariffs might be introduced for the European Union, while also hinting at similar measures against Canada and Mexico and extending existing tariffs on steel and aluminum.
The Trump administration has claimed that the new tariffs, referred to by the President as “reciprocal,” are aimed at equalizing competition between U.S. manufacturers and foreign rivals. Nevertheless, these imposed taxes may ultimately burden American consumers and businesses through increased pricing.
Even before solidifying the new tariffs, Trump voiced his intent to challenge India’s own tariffs, labeling the nation as a “tariff king.” New Delhi has responded positively by agreeing to purchase additional American oil and reducing its tariffs on U.S. products, including a decrease on certain Harley-Davidson motorcycles from 50% to 40%, a decision finalized before Modi’s Washington visit.
Additionally, India recently lifted retaliatory tariffs on various U.S. products, including almonds, apples, chickpeas, lentils, and walnuts. Recent agreements have enabled U.S.-based General Electric to partner with Hindustan Aeronautics in India for the production of jet engines, alongside the sale of American-made armed MQ-9B SeaGuardian drones.
Nonetheless, Trump has criticized U.S. trade deficits globally and is committed to reducing them, which he emphasized during prior discussions with Japan’s Prime Minister Shigeru Ishiba last week. The U.S. remains India’s largest trade partner, despite recording a trade deficit of $50 billion favoring India.
In the year 2023, trade in goods and services between India and the U.S. hit approximately $190.1 billion. Data from India’s External Affairs Ministry indicates that U.S. exports to India were close to $70 billion, while imports stood at around $120 billion.
An official from the Trump administration remarked on a call with reporters that India has made some modest positive advancements regarding trade. This official, who spoke under the condition of anonymity, mentioned that efforts are underway to finalize a fair trade agreement with India by the end of the year.
Modi’s meeting with Trump marks his fourth encounter with a foreign leader since Trump’s recent inauguration, following interactions with Israeli Prime Minister Benjamin Netanyahu, Ishiba from Japan, and King Abdullah II of Jordan.
Before his talk with Trump, Modi also met with National Security Adviser Mike Waltz and billionaire Elon Musk, the founder of SpaceX and an influential figure in the Trump administration.
Photographs posted on Modi’s social media account showcased a friendly discussion with Musk, who attended the meeting with some of his children and executive Shivon Zilis.
When asked about whether Musk spoke to Modi in a business or official capacity during the signing of the tariff orders, Trump stated, “India is a very hard place to do business because of the tariffs. They have the highest tariffs, just about in the world, and it’s a hard place to do business.”
In their discussions, immigration is also expected to be a topic on the agenda, as Modi can highlight India’s acceptance of the return of 104 migrants flown back on a U.S. military aircraft — the first such operation in connection with the Trump administration’s policies targeting immigration at the U.S.-Mexico border.
For the Trump administration, bolstering ties with India is vital for its strategic objectives to contain China within the Indo-Pacific region. Under Modi’s leadership, India is set to host a summit of the Quad nations — comprising the U.S., India, Japan, and Australia — later this year.
