Indian Prime Minister Narendra Modi and US President Donald Trump convened at the White House to deliberate on trade and other bilateral matters.
During their meeting, Trump disclosed an agreement for India to increase imports of American oil and gas, a move intended to help reduce the trade deficit between the two nations.
This discussion followed Trump’s recent announcement of a new reciprocal tariff policy. The US president remarked that “our allies are worse than our enemies” regarding import duties, emphasizing his administration’s stance on trade imbalances.
The reciprocal tariffs, which will be applicable to all US trading partners, are the latest in a series of trade measures introduced by the Trump administration. However, a definitive implementation date has yet to be established. Trump has previously used tariff threats as a negotiation strategy.
Trade and Tariffs Take Center Stage
Donald Trump has often referred to tariffs as “the most beautiful word in the dictionary,” and today was no exception.
Before sitting down with Modi, Trump spent nearly an hour addressing the media about his “reciprocal tariffs” strategy. Details remain scarce, but the approach seems to involve imposing tariffs on countries based on the trade restrictions they impose on US goods.
The meeting between Modi and Trump largely focused on this issue. “Whatever India charges, we charge them,” Trump told a room packed with reporters awaiting an update on their bilateral discussions.
Apart from tariff talks, the two leaders worked on strengthening trade relations. Modi highlighted India’s interest in securing its energy needs through increased trade in oil and gas with the US. Meanwhile, Trump confirmed that military sales to India would also be expanded.
Concerns Over Immigration Policies
Trump’s return to the White House has rekindled anxiety among Indian professionals working in the US, particularly those on H-1B visas.
During his first term, Trump tightened restrictions on the H-1B visa program, significantly increasing rejection rates from 5-8% under President Obama to 24% in 2018. Although it remains uncertain whether such policies will be reinstated, many Indian workers fear renewed challenges.
While some industry leaders, including Tesla CEO Elon Musk, have expressed support for the H-1B system, Trump’s administration remains divided on immigration policy.
Indians, who account for 72% of all H-1B visas issued, are especially vulnerable. Their concerns extend beyond visa restrictions to potential hostility toward Indian immigrants.
One of the most pressing issues is Trump’s attempt to deny automatic US citizenship to children born to temporary foreign workers. Although blocked by federal courts, the policy could be revived through higher judicial rulings.
A shift in birthright citizenship laws would disproportionately impact the Indian community. With over five million Indians in the US holding non-immigrant visas, many expectant parents are anxiously seeking clarity on their children’s legal status.
From ‘Namaste Trump!’ to ‘Howdy, Modi!’
Trump and Modi have shared a warm diplomatic relationship. In 2020, Modi hosted Trump in India with a grand rally at the world’s largest cricket stadium in Ahmedabad, Gujarat. The event, called “Namaste Trump!,” featured music and dance performances, drawing tens of thousands of attendees.
During his address, Modi lauded Trump’s leadership, stating, “Trump thinks big and the world knows what he has done to realise the American dream.”
This visit followed the “Howdy, Modi!” event in 2019, where Modi and Trump addressed 50,000 members of the Indian diaspora at a Houston football stadium. The two leaders exchanged smiles and hugs while making strong proclamations about their growing partnership.
However, analysts suggest that these events, while grand spectacles, are also strategic diplomatic moves aimed at solidifying ties between the two nations.
Shifts Since the ‘Howdy, Modi!’ Event
Much has changed since Modi’s 2019 visit to Houston, where he and Trump were the center of a large-scale community event.
At the time, Trump described the gathering as a “profoundly historic event,” possibly the largest reception of a foreign leader in US history. For Modi, the event was a platform to showcase India’s growing global influence and his popularity among the Indian diaspora.
Five years later, their relationship remains strong, but the US-India dynamic has grown more complex.
Modi, though still a popular leader, has faced political challenges at home, failing to secure an outright majority in last year’s elections. India’s economy has slowed, prompting foreign investors to withdraw capital.
Tensions over trade and H-1B visa policies persist, and diplomatic relations were tested last year after an alleged plot by an Indian agent to assassinate a Sikh separatist in the US.
However, India’s role as a strategic counterbalance to China remains a crucial element of US foreign policy.
Modi’s Agenda in Washington
Modi’s visit comes at a delicate moment, as his “Make in India” initiative faces challenges from Trump’s “America First” policy.
Unlike their 2017 meeting in Washington, which was marked by camaraderie, this visit is overshadowed by global trade disputes and Trump’s emphasis on tariffs. The White House has already announced plans for new reciprocal tariffs on Indian imports.
Modi’s primary goal is to mitigate the impact of these tariffs while ensuring that India remains an indispensable US ally.
He stated that he is open to lowering tariffs on American goods, repatriating undocumented Indian nationals, and increasing US imports of American oil to help balance trade.
Beyond trade, Modi aims to enhance cooperation in technology, defense, and energy, emphasizing common strategic interests.
Politically, he is using the visit to reaffirm India’s status as a key US partner in the Indo-Pacific, particularly in countering China’s growing influence.
While Trump’s voter base views India as an economic competitor, the personal rapport between the two leaders may help ease tensions.
The Strategic Importance of US-India Relations
Modi is among the first foreign leaders to visit Trump in his second presidential term, underscoring the significance of US-India relations.
Both nations share deep concerns over China’s ambitions and are part of the Quad alliance, aimed at countering Beijing’s influence in the Asia-Pacific.
Trade ties between the two countries are also substantial. The US is India’s second-largest trading partner, while India serves as a major market for American multinational corporations.
In recent years, companies like Taiwan’s Foxconn—an Apple supplier—have been shifting production to India as part of a broader move away from reliance on China.
The two countries also maintain strong people-to-people ties, driven by the large Indian diaspora in the US. However, illegal migration from India has become a growing concern for Washington.
Earlier this month, a US military aircraft deported a group of shackled Indian migrants back to India. Their treatment sparked outrage among India’s opposition leaders, adding another layer of diplomatic tension to an already complex relationship.