• Source:JND
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Washington: US President Donald Trump said on Thursday that Prime Minister Narendra Modi had offered to talk about easing tariffs, buying more US oil, gas and combat aircraft, concessions that may deter a trade war. The agreements came as the two leaders massed for White House talks hours after Trump unveiled a roadmap for reciprocal tariffs on every country that puts duties on US imports, his latest trade salvo directed at American friends and foes that the White House says will strengthen economic and national security.

Some of the goals were aspirational:  India wants to increase by "billions of dollars" its purchases of US defence equipment, including fighter jets, and may make Washington the "number one supplier" of oil and gas, Trump said at a press conference. And Delhi wants to double trade with Washington by 2030, PM Modi said.

"We're also paving the way to ultimately provide India with the F-35 stealth fighters," said Trump.

The F-35 is the most expensive US defence program and Lockheed Martin's biggest revenue generator. The F-35 Lightning II was on display at an airshow in India this week. Whether the deals resolve trade issues between the countries is not yet clear.

Trump says US will impose reciprocal tax on India

Although Trump had a warm relationship with PM Modi in his first term, he again on Thursday said India's tariffs were "very high" and promised to match them, even after his earlier levies on steel and aluminium hit India particularly hard.

"We are being reciprocal with India," Trump said during the press conference. "Whatever India charges, we charge them."

But the two leaders agreed to trade talks to resolve those differences and expressed optimism they could wrap up those talks soon. A senior Trump administration official said a deal could be reached as soon as this year.

"One thing that I deeply appreciate, and I learn from President Trump, is that he keeps the national interest supreme," PM Modi said earlier as he sat alongside Trump in the Oval Office. "Like him, I also keep the national interest of India at the top of everything else."

The two leaders also agreed to deepen security cooperation in the Indo-Pacific, a thinly veiled reference to competition with China, to joint production on technologies like artificial intelligence and nuclear energy.

The US has a $45.6 billion trade deficit with India. Overall, the US 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 unauthorised 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 US illegally.

PM 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 US rival. India is wary of neighbouring China's military buildup and competes for many of the same markets.

What Trump said on India-China issue

Trump said on Friday that he hoped to be of help in resolving skirmishes on the India-China border. 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 PM Modi. "But this is not true. India has a side, and that side is of peace."

(With inputs from agency)