India and the U.S. have agreed to resolve their trade dispute. The decision came after high-level talks between U.S. President Donald Trump and Indian Prime Minister Narendra Modi. India pledged to buy more American oil, gas, and weapons. Both sides also vowed to fight illegal immigration.
Trump slams India’s tariffs
Just hours before the meeting, Trump criticized India’s trade policies. He accused India of imposing “very strong tariffs” on American goods. However, he praised Modi for recent reductions. “It’s a big problem,” Trump said. But now, there’s a plan to fix it.
A deal within months
India’s Foreign Secretary Vikram Misri revealed that a trade deal could be finalized in just seven months. The joint statement highlighted India’s recent tariff reductions and increased market access for U.S. farm products. Negotiations will continue through fall 2025.
Billions in defense and energy deals
Trump announced India’s plan to buy “billions of dollars” worth of U.S. defense equipment. He suggested that Washington could become India’s top energy supplier. Modi set a bold goal: doubling U.S.-India trade by 2030.
Trump also revealed that India could get the advanced F-35 stealth fighter. However, Misri clarified that no formal deal is in place yet. The White House remained silent on the matter.
Trump’s tough stance
Trump has always taken a tough approach to trade. He once called India’s tariffs “very high.” Now, he vows to match them. “Whatever India charges, we charge them,” Trump said. Modi, however, stood firm. “Like him, I also keep the national interest of India at the top,” he declared.
US-India team up against china
Both leaders agreed to strengthen security ties in the Indo-Pacific. This is widely seen as a strategy to counter China. They also discussed joint projects in artificial intelligence and other advanced technologies.
Energy deals to cut trade deficit
Trump wants India to buy more American energy. India has already increased its purchases, from $15 billion to $25 billion in just a year. This could help lower America’s $45.6 billion trade deficit with India.
Trade expert Richard Rossow warned that tariffs will remain a major issue. “It’s going to be a boxing match,” he said. “India is willing to take a few hits, but there’s a limit.”
Cracking down on illegal immigration
The U.S. also wants India’s help to curb illegal immigration. Many Indian nationals enter the U.S. on work visas, while others arrive illegally. Both countries agreed to strengthen law enforcement cooperation.
India’s Russia dilemma
India maintains strong ties with Russia despite global sanctions. Modi insists India stands for peace. “The world thinks India is neutral,” he said. “But that’s not true. India has a side, and that side is peace.”
Trade talks will continue in the coming months. Both leaders aim for a breakthrough.
