Trump calls Modi a ‘great friend’ but warns of higher U.S. tariffs on Indian goods

Trump, who has previously criticized India as the “tariff king,” described its import levies as “very unfair and strong.”

“Whatever India charges, we charge them,” Trump said at a joint press conference with Modi. “So, frankly, it no longer matters to us that much what they charge.”

Trump reiterated his focus on reducing the U.S. trade deficit with India, which currently stands at $50 billion. He suggested that increasing U.S. energy exports to India could help balance trade, while also mentioning plans for a major trade agreement that could be finalized later this year.

The U.S. and India exchanged roughly $190 billion in goods and services in 2023, with the U.S. exporting nearly $70 billion worth of goods to India while importing around $120 billion. Modi had hoped to avoid additional tariffs and improve relations with Washington, particularly after tensions arose over his neutral stance on Russia’s invasion of Ukraine.

“The world has this perception that India is neutral in this process,” Modi said, referring to the war. “But this is not true. India has a side, and that side is peace.”

Even before his visit, India had shown some willingness to accommodate U.S. trade concerns by agreeing to purchase more American oil and reducing tariffs on certain U.S. goods, including Harley-Davidson motorcycles and agricultural products like almonds, apples, and lentils.

Trump’s tariff strategy has been a cornerstone of his second term, targeting not just India but also China, the European Union, Canada, and Mexico. His administration argues that these measures create a level playing field for American manufacturers, though critics warn they could lead to higher prices for U.S. consumers.

In addition to trade, Trump announced that the U.S. would increase military sales to India by “many millions of dollars.” He also hinted at the possibility of providing India with F-35 stealth fighter jets, something the country has long sought.

Trump further pledged to support India’s request for the extradition of Tahawwur Hussain Rana, who was convicted in the U.S. for plotting a 2008 attack on a Danish newspaper. “He’s going to be going back to India to face justice,” Trump stated, adding that more extraditions could follow.

Trump and Modi also addressed immigration issues, particularly concerning Indian nationals in the U.S. Trump has promised a mass deportation of undocumented immigrants, including more than 725,000 Indians currently in the country without authorization.

“Any verified Indian who is in the U.S. illegally, we are fully prepared to take them back to India,” Modi said.

India recently accepted the return of 104 migrants on a U.S. military plane—the first such flight under Trump’s intensified immigration enforcement.

Before meeting with Trump, Modi held discussions with National Security Adviser Mike Waltz and met with billionaire entrepreneur Elon Musk, a senior Trump administration official. When asked whether Musk attended in his government role or as a business leader, Trump remarked:

“India is a very hard place to do business because of the tariffs. They have the highest tariffs, just about in the world, and it’s a hard place to do business. No, I would imagine he met possibly because, you know, he’s running a company.”

Modi is the fourth world leader to visit Trump since his second inauguration, following Israeli Prime Minister Benjamin Netanyahu, Japanese Prime Minister Shigeru Ishiba, and Jordan’s King Abdullah II.

Despite warm words exchanged during their meeting, Trump’s firm stance on tariffs and trade deficits signals that U.S.-India economic relations will remain a key challenge in the years ahead.