India and the US share a complex yet evolving trade and defense relationship. Recently, Prime Minister Narendra Modi and former US President Donald Trump had a crucial meeting where several key issues were discussed. From F-35 fighter jets to the ongoing tariff war, this meeting had major implications for both countries.
Let’s dive into the six biggest highlights of the Modi-Trump meeting.
- F-35 Fighter Jet Deal Still Uncertain
Trump announced that India would buy more oil, gas, and military hardware from the US, including the F-35 fighter jets. However, the joint statement released after the meeting did not mention the F-35 deal. Indian Foreign Secretary Vikram Misri clarified that while the purchase is under discussion, no formal process has started yet.
- No Tariff Relaxation for India
Trump made it clear that America will not offer tariff exemptions to India. Under his “Reciprocal Tariff” policy, the US will impose the same level of tariffs that other countries place on American goods. This could impact Indian exports like steel, aluminum, and textiles.
- India Ready to Take Back Illegal Immigrants
During the meeting, PM Modi assured Trump that India will take back illegal Indian immigrants in the US. This move aligns with India’s efforts to strengthen ties with the US while addressing immigration concerns.
- US Tariff War: Impact on India
Trump imposed 25% tariffs on Mexico and Canada and 10% on China, affecting global trade. While this could increase costs for American businesses, it also opens opportunities for India. With the US looking for new trade partners, India can benefit by expanding its exports.
- Canada Hits Back with Retaliatory Tariffs
In response to US tariffs, Canada’s Prime Minister Justin Trudeau announced a 25% tariff on $155 billion worth of American goods. This includes beer, wine, fruits, vegetables, clothing, and home appliances. This move highlights the rising tensions in global trade, which could indirectly impact India’s market access.
- Strengthening Energy & Defense Cooperation
India is increasing its crude oil and natural gas imports from the US. Additionally, discussions on military hardware deals indicate deeper defense collaboration. These steps will help reduce India’s trade deficit with the US and strengthen bilateral ties.
Final Touches
The Modi-Trump meeting reaffirmed the growing strategic and economic partnership between India and the US. While challenges like trade tariffs and immigration policies persist, both nations are working towards stronger economic and defense ties.
With the global trade landscape shifting, India’s position as a key US partner is more important than ever. Now, the focus will be on how India navigates the changing global economy to secure its interests.
What do you think about India’s trade strategy with the US? Let us know in the comments!