Washington: U.S. President Donald Trump announced on Thursday that Indian Prime Minister Narendra Modi had offered to discuss easing tariffs, increasing purchases of U.S. oil, gas, and combat aircraft, and considering other trade concessions. However, these proposals have yet to resolve the ongoing trade standoff between the two nations.
The offer emerged after high-level discussions at the White House, just hours after Trump criticized the business climate in India and revealed plans for reciprocal tariffs on countries that impose duties on U.S. 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,” Trump said. “And really, it’s a big problem, I must say.”
Trade Deal on the Horizon?
Following the meeting, both leaders agreed to work towards a deal aimed at resolving trade concerns. According to India’s Foreign Secretary Vikram Misri, an agreement could be finalized within the next seven months. A senior Trump administration official suggested that a deal might even be reached by the end of the year.
Some of the agreements remain aspirational. India is looking to expand its purchases of U.S. defense equipment—potentially worth billions of dollars—including fighter jets. Additionally, Trump noted that New Delhi could soon make Washington its “number one supplier” of oil and gas.
Modi also expressed India’s ambition to double trade with the United States by 2030. However, despite discussions on long-planned nuclear energy cooperation, legal hurdles continue to delay progress.
“We’re also paving the way to ultimately provide India with the F-35 stealth fighters,” Trump stated.
Misri later clarified that the F-35 deal is still in the proposal stage, with no formal negotiations underway. The White House has yet to comment on the status of any potential agreement.
Tariff Disputes Persist
Despite the warm relationship between Trump and Modi during Trump’s first term, the U.S. president reiterated his concerns about India’s tariffs, calling them “very high” and pledging to impose equivalent duties in return. His administration had already levied tariffs on Indian steel and aluminum exports, dealing a blow to India’s metal industry.
“We are being reciprocal with India,” Trump said during the press conference. “Whatever India charges, we charge them.”
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In response, Modi reaffirmed India’s commitment to protecting its national interests.
“One thing that I deeply appreciate, and I learn from President Trump, is that he keeps the national interest supreme,” Modi stated. “Like him, I also keep the national interest of India at the top of everything else.”
Strengthening Security and Tech Cooperation
Beyond trade, the two leaders praised each other and agreed to strengthen security ties in the Indo-Pacific—a veiled reference to countering China’s growing influence. They also pledged to collaborate on advanced technologies, including artificial intelligence and joint defense production.
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Sources indicated that India’s recent trade gestures were designed to ease tensions with Washington. A senior Trump aide suggested that boosting defense and energy exports to India could help lower the U.S. trade deficit.
