Trump plans 'wonderful trade deals' with PM Modi soon after reciprocal tariff bombshell
US President Trump and Prime Minister Modi meet to discuss trade, aiming for beneficial agreements.
Less than two hours after US President Donald Trump announced reciprocal tariffs on trade partners, he sat down with Prime Minister Narendra Modi with an aim of finding a middle ground and making 'wonderful trade deals' with India.
"They're going to be purchasing a lot of our oil and gas. We're going to make some wonderful trade deals for India and for the US," Trump said while talking to the reporters at the White House.
This is the first meeting between the two leaders since Trump assumed office, his second term as US President, on January 20.
Track live updates on Narendra Modi's US visit here
Ahead of the meeting Trump expressed confidence that the US and India would forge "wonderful trade deals" that would benefit both nations. He also emphasizing his admiration for PM Modi's leadership. "Prime Minister Modi is a great leader," Trump said, adding that both countries would enter into beneficial trade agreements.
However, just hours before his meeting with Modi, Trump unveiled his plan to impose reciprocal tariffs on all nations, aiming to match US import duties with those charged by other countries. "I've decided for purposes of fairness that I will charge a reciprocal tariff," Trump stated in the Oval Office. "It's fair to all. No other country can complain."
While the new tariff policy could impact trade with several countries, Trump specifically highlighted India's position, noting that the country is "right at the top of the pack" when it comes to tariffs. The announcement is expected to have consequences for US-India trade relations, especially with PM Modi seeking to negotiate favorable terms for his country during the talks.
What's on the cards?
The talks between the two leaders are expected to yield significant agreements, particularly in the areas of defence and trade. Trump has shown keen interest in expanding US defence sales to India, with discussions possibly leading to the finalization of deals including the co-production of Stryker armoured fighting vehicles in India.
Trade also remains a key focus of the bilateral relationship. PM Modi's administration is eager to avoid tariffs and expand the trade basket with the US. A possible boost to trade in energy, particularly oil and gas, is also on the horizon, with Trump noting that India would be "purchasing a lot of our oil and gas."
Before meeting with Trump, Prime Minister Modi held separate discussions with US National Security Advisor Mike Waltz, Director of National Intelligence Tulsi Gabbard, billionaire Elon Musk, and Republican leader Vivek Ramaswamy.