Indian Prime Minister Modi brings a trade ‘gift’ to Trump talks

- ADVERTISEMENT -

WASHINGTON (Reuters) -Indian Prime Minister Narendra Modi comes bearing gifts as he meets Donald Trump on Thursday, hoping that concessions on tariffs, fresh business deals and the prospect of cooperation on China could deter a trade war.

Trump welcomed Modi to the White House hours after he unveiled a roadmap for reciprocal tariffs on every country that puts duties on U.S. imports, his latest trade salvo directed at American friends and foes that the White House says will strengthen economic and national security.

- ADVERTISEMENT -

India may not be exempt: Although Trump had a warm relationship with Modi in his first term, he has called India a “very big abuser” on trade and his earlier levies on steel and aluminum hit India particularly hard.

“They’re going to be purchasing a lot of our oil and gas,” said Trump as he met Modi in the Oval Office. “We’re going to make some wonderful trade deals for India and for the U.S.”

Before his meeting with Trump, Modi’s team mulled possible promises to Trump, including increased liquefied natural gas, combat vehicle and jet engine purchases, according to Indian government officials who declined to be named.

“One thing that I deeply appreciate, and I learn from President Trump, is that he keeps the national interest supreme,” Modi said as he sat alongside Trump in the White House. “And like him, I also keep the national interest of India at the top of everything else.”

Indian officials are also looking at possible deals on U.S. agriculture exports to India and investment in nuclear energy, along with tariff cuts in at least a dozen sectors, including electronics, medical and surgical equipment, and chemicals.

It’s a “gift” for Trump, said one of the sources, who declined to be named as they previewed a private meeting.

U.S. and Indian officials were also moving forward with talks on a bilateral trade deal, with a Trump administration official saying they hoped to have a deal in place this year.

“We have some very big trade deals to announce in the very near future,” Trump said.

The Trump aide said that the president sees defense and energy sales to India lowering the U.S. trade deficit.

The case of billionaire Gautam Adani may come up in the talks after his indictment by the U.S. Justice Department in November over an alleged bribery scheme. Adani hails from Modi’s western state of Gujarat and his Adani Group runs several key infrastructure projects across the globe.

Opponents and critics often allege the meteoric rise of Adani’s ports-to-energy empire was partly due to his close relations with, and favorable treatment by, administrations run by Modi’s BJP and its allies. The duo have repeatedly denied impropriety.

Another thorny issue will be in the background: the alleged Indian intelligence plot to assassinate a Sikh activist in the United States during the administration of Trump’s predecessor, Joe Biden. India has denied involvement in the incident.

A group of American Sikh leaders called on Trump to prioritize the community’s security in a letter this week. The U.S. official who briefed reporters said Trump prioritizes the safety of every American.

But it will be the tariff issue that is front and center, said Richard Rossow, head of the India program at the Center for Strategic and International Studies, a Washington think tank.

“It’s going to be a boxing match,” he said. “I think India is willing to take a few hits, but there’s a limit.”

The U.S. has a $45.6 billion trade deficit with India. Overall, the U.S. trade-weighted average tariff rate has been about 2.2%, according to World Trade Organization data, compared with India’s 12%.

WHAT TRUMP WANTS

Trump wants more help from India on unauthorized immigration. India is a major source of immigrants to the United States, including a large number in the tech industry on work visas and others in the U.S. illegally.

Modi met with Elon Musk on Thursday at Blair House, where the prime minister is staying opposite the White House. Musk is a key Trump ally and his Starlink company’s bid to enter the South Asian market could come up for discussion.

He also held a meeting with Tulsi Gabbard, Trump’s newly installed director of national intelligence, and they discussed enhancing counter-terrorism and cybersecurity cooperation.

India may prove critical to Trump’s strategy to thwart China, which many in his administration see as the top U.S. rival. India is wary of neighboring China’s military buildup and competes for many of the same markets.

Modi also worries that Trump could cut a deal with China that excludes India, according to Mukesh Aghi, president of the U.S.-India Strategic Partnership Forum lobbying group.

Meanwhile, India has continued its ties with Russia as it carries out its war with Ukraine. India has remained a major consumer of Russian energy, for instance, while the West has worked to cut its own consumption since the war started.

“The world had this thinking that India somehow is a neutral country in this whole process,” said Modi. “But this is not true. India has a side, and that side is of peace.”

(Reporting by Trevor Hunnicutt, David Brunnstrom, Andrea Shalal and Simon Lewis in Washington, Manoj Kumar, Aditya Kalra and Aditi Shah in New Delhi, and Shivam Patel in Bengaluru; Editing by Don Durfee, Alistair Bell and Deepa Babington)

Related posts:

Global energy CEOs endorse India as ‘most attractive place’ to invest ‘Kem Cho Trump’ event in Ahmedabad to dazzle the world Modi brings a tariff ‘gift’ to Trump talks Experts and community leaders highlight key strategic issues for upcoming Trump-Modi meeting