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Modi and Trump Strengthen U.S.-India Ties with Trade, Defense, and Energy Deals

BT

Bibisha Tamang

Fri Feb 14 2025

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Indian Prime Minister Narendra Modi met with U.S. President Donald Trump, to discuss key trade and defense deals aimed at strengthening bilateral ties.

During their meet, they announced that India will import more US oil and gas to help reduce the trade deficit between the two countries.

“They’re going to be purchasing a lot of our oil and gas. They need it, and we have it,” Trump said at a joint press briefing in Washington. Modi emphasized India’s focus on energy security, pledging to increase trade in oil, gas, and nuclear energy

Modi's visit comes as Trump pushes for equal trade tariffs. Despite trade tensions, the two leaders share a strong bond. "We've had a wonderful relationship," Trump said while welcoming Modi.

Trump also announced that the US would increase military sales to India, including F-35 fighter jets. The two leaders also discussed security cooperation. Trump announced the U.S. had approved the extradition of Tahawwur Rana, accused in the 2008 Mumbai terror attack, to India. Modi welcomed this move and stressed the need for strong action against cross-border terrorism.

Immigration was another key topic, with Trump expected to ask India to take back undocumented immigrants. 

Ahead of the meeting, Trump ordered his team to prepare new tariffs on US trading partners, set to take effect by April 1. He criticized the current trade system, calling it unfair to the US.

The White House pointed out that while US agricultural tariffs average 5%, India’s are 39%. It also noted India’s 100% tariff on US motorcycles compared to the US’s 2.4% tariff on Indian motorcycles.

Modi also met with Elon Musk to discuss space, technology, and innovation. “With Trump, we will work twice as fast as before,” he said.

Trump admitted tariffs might temporarily raise prices but said they would help US manufacturing and create jobs. He has already imposed a 10% tariff on Chinese imports and is planning tariffs on Canada and Mexico. He also removed exemptions from his 2018 steel and aluminum tariffs.

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