In a recent telephone conversation, U.S. President Donald Trump urged Indian Prime Minister Narendra Modi to enhance India’s procurement of American-made security equipment and to foster a more equitable bilateral trading relationship. This call, described by the White House as “productive,” marks the first interaction between the two leaders since Trump assumed office, emphasizing the importance of addressing trade disparities between the nations.
During the discussion, Trump reiterated his concerns over India’s high import tariffs on American products, labelling countries like India, China, and Brazil as “terrible tariff makers.” He expressed a clear intention to prioritize American interests in trade negotiations, stating, “We’re going to put tariffs on outside countries and people that really mean harm to us”. This aligns with Trump’s broader “America First” trade policy, which aims to reduce the U.S. trade deficit and protect domestic industries.
The dialogue also touched upon plans for Modi’s anticipated visit to the White House in February and India’s role in hosting the Quad Leaders later this year. Both leaders reaffirmed their commitment to deepening cooperation on various regional issues, including security in the Indo-Pacific and responses to global conflicts such as those in Ukraine and the Middle East.
Trade experts have voiced concerns that Trump’s return to power could lead to increased tariffs on Indian goods, particularly textiles and pharmaceuticals. His previous characterization of India as a “tariff king” has raised alarms among exporters who fear retaliatory measures could impact their market access. The U.S. remains India’s largest trading partner, with bilateral trade exceeding $118 billion in 2023-24, highlighting the critical nature of these discussions for both economies.
As India navigates these complex trade dynamics, it faces pressure not only to increase defence purchases from the U.S. but also to address tariff-related issues that could shape future economic relations. The upcoming meeting between Modi and Trump is expected to be pivotal in determining the trajectory of U.S.-India trade relations amidst an evolving geopolitical landscape.
