Indian Prime Minister Narendra Modi’s meeting with US President Donald Trump has set the stage for bilateral cooperation in trade and defence but there are expectations among observers that India might be added to Washington’s expanding tariff list targeting imports from around the world.
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During their meeting in Washington on Thursday, Modi proposed to increase two-way trade to US$500 billion by 2030. Trade between India and the US totalled US$118 billion in the 2024 financial year, with the South Asian country recording a trade surplus of US$32 billion.
Trump and Modi also discussed boosting defence cooperation such as co-production of anti-tank missiles and maritime patrol aircraft. The US leader announced plans to supply F-35 fighter jets to India, signalling that his administration was prepared to offer the latest military technologies to the country.
The possibility of higher tariffs was brought up by Trump, who said the import levies imposed by India were “very unfair and strong”.
“Whatever India charges, we charge them. So, frankly, it no longer matters to us that much what they charge,” said Trump, who called Modi a “much better negotiator than me” at their meeting in the White House.
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According to an ANZ report on Friday, India and Thailand are among the Asian countries most vulnerable to US trade tariffs.