Trump Hosts Modi for Trade Talks Amid Tariff Changes

Fri Mar 14 2025 16:41:34 GMT+0200 (Eastern European Standard Time)
Trump Hosts Modi for Trade Talks Amid Tariff Changes

Discussions between the US and India focus on reciprocal trade tariffs and immigration issues.


US President Donald Trump welcomed Indian Prime Minister Narendra Modi to the White House as talks on trade and tariffs take center stage.


US President Donald Trump and Indian Prime Minister Narendra Modi met at the White House to engage in significant trade discussions. Modi's two-day visit comes at a pivotal moment as Trump has initiated reciprocal tariffs on US trading partners, aimed at leveling the playing field against countries imposing their own high duties on American exports.

A key topic on the agenda is immigration, where Trump is reportedly looking to encourage India to accept the return of thousands of undocumented immigrants. Prior to this meeting, Modi revealed on social media that he had discussions on space, technology, and innovation with Tesla and SpaceX CEO Elon Musk, underscoring the multifaceted nature of US-India relations.

The rapport between Trump and Modi has blossomed over the years, despite ongoing trade tensions. Trump expressed optimism about their relationship, stating, "We've had a wonderful relationship." Modi echoed this sentiment, indicating that the partnership would advance at an accelerated pace compared to Trump's previous term in office.

Discussions also hinted at increased Indian purchases of US oil and gas, with Trump noting, "They need it. And we have it." However, the backdrop of these discussions is Trump's recent directive to his advisers to explore broader tariffs that may potentially be in place by April 1, indicating a more aggressive stance against global trade practices.

In a news conference in the Oval Office, Trump criticized the current state of tariffs, suggesting American allies impose higher taxes than adversaries. He cited the discrepancy in tariffs, revealing that while the average US tariff on agricultural goods is approximately 5%, India's average hovers around 39%.

Critics have pointed out the potential short-term effects of Trump's tariff policies on consumer prices. While Trump acknowledged these risks during the meeting, asserting, "Prices could go up somewhat, short term, but prices will also go down," he remained confident that the strategy would stimulate American manufacturing and create employment opportunities.

Furthermore, Trump has previously enacted additional tariffs on imports from China due to concerns surrounding the opioid crisis linked to fentanyl, and announced potential tariffs on Canada and Mexico after a temporary suspension. This meeting with Modi emphasizes the intricate and evolving dynamics of international trade relations under Trump’s administration.

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