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Key Insights from Modi-Trump Meeting: Enhanced Trade and Defense Cooperation, Along with Mutual Accolades | WTAJ

SHEIKH SAALIQ, Associated Press


Key Insights from Modi-Trump Meeting: Enhanced Trade and Defense Cooperation, Along with Mutual Accolades | WTAJ

FILE – An Indian man parks his Harley Davidson Fat Boy motorcycle in New Delhi, India, March 1, 2017. (AP Photo/Manish Swarup, File)

NEW DELHI (AP) — Indian Prime Minister Narendra Modi and U.S. President Donald Trump met at the White House on Thursday to discuss reducing tariffs, addressing trade disputes, and strengthening defense relations.

Despite Trump’s threats of imposing tariffs, both leaders indicated a willingness to negotiate on trade, hinting at potential concessions from both New Delhi and Washington.

Trump complimented Modi as a “much better negotiator than me,” and Modi creatively responded by referencing Trump’s “MAGA” slogan, asserting he is committed to “Make India Great Again.”

Here are some significant points from their discussion:

Trade and tariffs dominated the agenda

Trade and tariff concerns were pivotal in their talks. Trump expressed that New Delhi’s tariff policies are “very unfair and strong,” suggesting that India would not escape scrutiny.

However, both leaders agreed to negotiate a solution to these trade issues, with Modi anticipating the completion of an agreement by the end of the year.

Trump also indicated a desire to reduce the current $50 billion trade deficit with India by boosting U.S. energy exports to the nation.

Modi proposed increasing bilateral trade with the U.S. to $500 billion by 2030.

“Trump’s intention is to alter the global trading landscape. India is aware of this and is now seeking practical solutions to its challenges,” noted Raja Mohan, an analyst at the Institute of South Asian Studies in Singapore.

A renewed defense alliance is in the works

Trump announced plans for the U.S. to increase military sales to India, including a potential deal for F-35 stealth fighter jets, although no timeline was provided. Indian Foreign Secretary Vikram Misri conveyed that the proposal is currently under consideration.

Rahul Bedi, a defense analyst based in India, remarked that such an arrangement could take “several years” to finalize.

Since 2008, India has procured over $20 billion in U.S.-origin defense equipment, and a recent agreement will enable U.S.-based General Electric to collaborate with an Indian firm to manufacture jet engines in India.

Modi and Trump also concurred on enhancing security cooperation in the Indo-Pacific region, which indirectly addresses the rising competition with China in the area.

Extradition of a terror attack suspect to India has been discussed

Trump expressed support for extraditing a suspect involved in the 2008 Mumbai attacks, which resulted in the deaths of 166 people, likely referring to Tahawwur Hussain Rana.

Indian officials have asserted that Pakistan’s intelligence services collaborated with the Pakistan-based militant group Lashkar-e-Taibah in orchestrating the attack, which Islamabad has denied.

The extradition of Rana would enhance Modi’s standing domestically, as he has maintained a hardline approach towards Pakistan.

Modi and Trump also touched upon immigration issues, with the Indian prime minister assuring he would accept any citizens illegally residing in the U.S.

Recently, India accepted the return of 104 migrants on a U.S. military flight.

___

Associated Press writer Ashok Sharma contributed to this report.

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India Prepares Strategy to Address Tariff Concerns: Focus on Modi-Trump Meeting

India Prepares Strategy to Address Tariff Concerns: Focus on Modi-Trump Meeting

PM Narendra Modi with US President Donald Trump (File Image)

Photo: PTI

New Delhi: In preparation for Prime Minister Narendra Modi‘s upcoming talks with US President Donald Trump during his visit to the US, India is reportedly considering further duty reductions to promote American exports, according to Reuters, which cited government sources. Additionally, New Delhi might reference recent tax reductions on American imports as a strategy to bypass tariffs.

PM Modi is scheduled to visit the United States on February 12-13 to meet with President Trump. Before this meeting, India is contemplating tariff adjustments, although there has been no official confirmation as of yet.

In the coming days, it is anticipated that India may implement custom duty reductions across a variety of sectors, including electronics, surgical and medical equipment, and certain chemicals, as reported by Reuters.

These adjustments are aimed at items for which India often relies on US imports and could feasibly acquire more from the United States, such as dish antennas and wood pulp.

Moreover, it has been suggested that India might leverage recent duty cuts to evade Trump tariffs, as indicated in a report by the Times of India. Trump’s economic adviser, Kevin Hassett, pointed out India’s high tariffs, which hinder imports, and noted that Prime Minister Modi had significant discussions planned with President Trump during their upcoming meeting.

India Reduces Custom Duty on American Goods

In the latest Union Budget, India announced reductions in customs duties for motorcycles, including those made by Harley Davidson, as well as on synthetic flavoring essences. This duty reduction is expected to favor American exporters directly.

The tariff on motorcycles with engine sizes below 1,600cc has been decreased from 50% to 40%, while for those exceeding 1,600cc, it has been lowered from 50% to 30%.

India has cut the duty on fish hydrolysate used for aquatic feed production from 15% to 5%, a change that significantly affects US exports, valued at $35 million in 2023-24.

Additionally, the customs duty on synthetic flavoring essences has been reduced from 100% to 20%, corresponding to US exports worth $21 million in FY24.

The Global Trade Research Initiative (GTRI) remarked that despite the Trump administration’s frequent criticisms labeling India as the biggest tariff offender, the recent Budget has introduced notable tariff cuts across various products that benefit US exports.

“With major tariff reductions on technology, vehicles, industrial inputs, and waste imports, India seems to be making efforts to facilitate trade even amidst a strained global trading environment. It remains to be seen if these reductions will influence Washington’s perspective on India’s trade policies or become a contentious issue in the US election cycle,” the GTRI noted.