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Tariffs, trade, immigration loom large over Modi-Trump meeting

Tariffs, trade, immigration loom large over Modi-Trump meeting

Posted on February 13, 2025 By admin


Prime Minister Narendra Modi arrived in Washington on Wednesday evening (early Thursday Indian time, February 13, 2025) for bilateral talks with U.S. President Donald Trump, presumably with the objective of managing the relationship with the newly re-elected President, whose style revolves around an ‘America First’ ethos and a trademark unpredictability.

Mr. Modi, who flew into Washington after a visit to France, is one of the early visitors – the fourth foreign leader- to visit the White House since Mr. Trump returned to power on January 20.

PM Narendra Modi U.S. visit Day 1 LIVE updates

Tariffs, trade in defence and energy, immigration, and the Indo-Pacific are on the menu for Thursday’s bilateral discussions at the White House. The days and hours in the run up to the meeting were not without drama. Last week, the government faced flack in Parliament after the Trump administration deported 104 Indian citizens to India, shackling many of them.

On Thursday afternoon Mr. Trump signed an executive order on reciprocal tariffs, three hours before the meeting with the Prime Minister. Mr. Trump has already shocked the world by reinstating 25% tariffs on steel and aluminium, imposing tariffs on China, announcing – and then pausing – tariffs on Mexico and Canada.

The government had announced some tariff reductions and elimination as part of the Union Budget on February 1, including high-end motorcycles (impacting Harley-Davidson bikes from the U.S. ), textiles and electronics. Reports also suggest that India is considering tariff cuts on other U.S. imports.

These steps were “well received” by the Trump administration, a senior White House official said, calling them “early but modest” moves. The official was one of several who spoke to reporters on a Thursday morning briefing call.

Possible announcement on trade deal and new defence framework

The official suggested that there would be an announcement around what they described as a “fair” bilateral trade agreement between India and the U.S. in 2025. Mr. Trump views countries that have trade surpluses with America as taking advantage of the U.S.

Asked about the future of the India-U.S. Initiative on Critical and Emerging Technologies (iCET), a broad framework technology partnership signed by the Modi government and Biden administration, the official said he expected technology collaboration to continue under the Trump administration, emphasising supply chain resilience and diversification, semiconductors and critical minerals.

On energy, another White House official said the U.S. “will prioritise India as a key importer of America’s natural resources”.

India was designated a Major Defence Partner of the U.S. in 2016, during the first Trump administration and the two sides are “moving towards signing a new defence framework” one of the officials said. The U.S. was discussing new defence procurement, the official added, linking this to bringing down the trade deficit.

On whether Mr. Trump would raise the issue of an alleged Indian government plot to kill an India-born Khalistani separatist, Gurpatwant Singh Pannun, who is a U.S. citizen, an official said that Mr. Trump “prioritises nothing more than the safety of every American, and that is the continued position of this administration”. They cited the release of an American hostage from Russia days ago.

On whether there was a role for India in ending the Russia-Ukraine war, one of the officials cited India’s diplomatic relationships and said that Mr. Trump would welcome conversations with Mr. Modi and others on how to bring peace in Europe. Cooperation on China is expected to continue, the officials said along the lines seen during the first Trump administration and the Biden administration.

U.S-India Partnership a foundational element of Trump administration: U.S. official

Echoing the words of the Biden administration, one of the officials described the India-U.S. bilateral partnership as “one of the most critical, if not the most critical” bilateral relationship in the 21st Century.

“I can assure you, to ensure that that remains a foundational element moving forward in this term,” they said.

Prior to the talks, the Prime Minister, who is staying at Blair House, where the President often hosts guests, had meetings with key Trump allies and officials. Mr. Modi met with U.S. National Security Adviser Michael Waltz, Trump ally and former Republican presidential hopeful Vivek Ramaswamy and Trump donor and ‘special government employee’, Elon Musk.

Shortly after he arrived, Mr. Modi met with Tulsi Gabbard, who had just been sworn is as Director of National Intelligence.

“There is strong potential for cooperation in sectors like AI, semiconductors, space and more,” Mr. Modi tweeted after his conversation with Mr. Waltz, which focused on defence, technology and security, as per the Prime Minister.

With Mr. Musk, the Prime Minister said he had discussed innovation, space, mobility and technology. He posted pictures with some of the Musk children.

In recent days reports have suggested that the two men were to discuss Mr. Musk’s satellite company Starlink’s entry into India. The company had run up against Mukesh Ambani’s Reliance Jio on spectrum allocation issues.

“I talked about India’s efforts towards reform and furthering ‘Minimum Government, Maximum Governance’,” Mr Modi said on X, the social media site owned by Mr. Musk. The tech billionaire is currently in the midst of a controversial reorganization and shrinking of the U.S. federal government as the head of the new Department of Government Efficiency (DOGE).

Published – February 13, 2025 11:58 pm IST



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