US President Donald Trump and Indian Prime Minister Narendra Modi shook hands at the White House in Washington, DC on February 13, 2025.
Kevin Lamarck | Reuters
New Delhi and Washington will more than double the $500 billion bilateral trade by 2030, Indian Prime Minister Narendra Modi said at a joint press conference with President Donald Trump on Thursday.
At the end of the two leadership meeting in Washington, Modi said, “Our team will close quickly and work on a mutually beneficial trade agreement.”
Trump acknowledged India's recent move to reduce tariffs on certain imports, saying it would begin talks on trade disparities, and hoped to reach an agreement.
The statement comes hours after Trump signed a presidential memorandum outlining his plan to impose “mutual tariffs” on foreign countries, including India.
The US will simply charge the same tariff charges that India charges, Trump said, but he said the trade deficit with India could be addressed with oil and gas sales.
Compared to the US, which imposes 3.3%, India's simple average tariff on countries with the most favorable state status is 17%. The US enjoys most major economy and MFN status.
According to the US Trade Representative, the US total commodity trade with India is estimated to be $129 billion in 2024. India's surplus with the second largest trading partner, the United States, reached $45.7 billion last year.
The US will increase military sales to India this year, and will ultimately offer F-35 fighter jets to Asian allies, Trump will stand up to what he called the “terrorist Islamic terrorism threat.” He said at the briefing. India is the world's largest defence device importer.
Modi said India and the US will cooperate in the development of artificial intelligence and semiconductors, focusing on establishing a strong supply chain for strategic minerals.
The lofty goal of $500 billion in trade could be achieved, says Professor of Finance at the University of Chicago Booth Business School of India and former Governor of India's Reserve Bank of India on CNBC's “Squawk Box Asia.” He spoke.
In addition to shifting India's leading defense suppliers towards the US for weapons, India could increase purchases of liquefied natural gas from American manufacturers, Rajan added.
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The Trump Modi Conference poses a threat that US tariffs were looming.
“We are now mutual nations… we have any Indian claims, we charge them. Even if other countries charge, we charge them The US President said at a press conference.
The president said mutual tariffs will soon be in effect as his administration is working to determine the appropriate tariff levels for the countries affected.
Trump is already slapping tariffs in China, Canada and Mexico, as well as bringing global tariffs on steel and aluminum imports. Trump's tariffs in Canada and Mexico are currently suspended after both countries pledged to crack down on illegal drug trafficking at their respective borders with the US
Despite the tone of encouragement from S., including the issue of illegal immigration and the close ties between India and Russia. Daniel Balazs, a researcher at the Rajaratnam School of International School, said signs of friction remained in relations between the US and India.
“The latter in particular is unlikely to leave soon and will likely remain a painful point between both sides,” he said.
