Modi-Trump talks: $500B Trade deal & Defence boost amid tariff tensions

US President Donald Trump and Indian Prime Minister Narendra Modi met for crucial bilateral talks at the White House on Thursday. Despite recent criticisms of India’s business environment, Trump outlined measures to strengthen US-India relations, including reciprocal tariffs on countries imposing duties on US imports. The discussions focused on increasing trade, boosting defence cooperation, and addressing key economic and security concerns.

Trump revealed that India plans to increase its purchase of US defence equipment, particularly fighter jets. Additionally, India is considering making the US its top oil and gas supplier. Meanwhile, Modi reaffirmed India’s goal of doubling trade with the US by 2030. He described the meeting as “excellent” and a significant step toward improving relations.

Here are the key takeaways from the talks:

Extradition of Tahawwur Rana: Trump confirmed that his administration has approved the extradition of Tahawwur Rana, a key figure in the 26/11 Mumbai terror attacks. Rana, a Canadian national of Pakistani origin, is currently in custody in Los Angeles. He is linked to David Coleman Headley, the Pakistani-American terrorist behind the attacks. Trump emphasized the importance of bringing Rana to justice, calling him “very evil.”

Defence Cooperation: The US and India agreed to strengthen their defence ties, with Trump announcing that the US would move forward with supplying India advanced F-35 fighter jets. In addition, both leaders discussed expanding cooperation in critical technologies, energy, and connectivity. Trump also revealed that military sales to India would increase by billions of dollars in the coming years.

Energy Trade: Trump and Modi reached a significant agreement to make the US a leading supplier of oil and gas to India. Trump noted that India’s high tariffs on US goods, particularly cars, posed a challenge. He stressed that US oil and gas exports could help reduce the trade deficit between the two countries. Trump further highlighted India’s tariffs, which can exceed 70 percent on certain goods, and Modi responded by committing to address these issues in good faith.

Eliminating Terrorism: The two leaders discussed the ongoing fight against radical Islamic terrorism. Modi thanked Trump for approving the extradition of Rana, stressing the need for decisive action against cross-border terrorism. Both leaders pledged to stand together in combating terrorism and vowed to ensure justice for the victims of the 2008 Mumbai attacks.

Tariffs: Trump reiterated his concerns over India’s high tariffs, which he described as one of the highest in the world. He criticized India’s trade barriers, which make it difficult for US products, like cars, to enter the Indian market. In response, Trump announced a new approach: “We’re just going to say: ‘Whatever you charge, we charge.’”

These talks mark a pivotal moment in US-India relations, with both leaders seeking to resolve long-standing economic issues while strengthening their strategic partnership.