Trump and Modi Meeting; Agreement on Increasing U.S. Energy and Weapon Exports to India

The President of the United States stated that the Prime Minister of India proposed ideas regarding tariff reductions, purchasing oil and gas, and acquiring advanced fighter jets from the U.S.; according to Reuters, these concessions could prevent a potential trade war between the two countries. The meeting between Donald Trump and Narendra Modi lasted over an hour at the White House on Thursday evening, January 25, and afterward, both parties attended a joint press conference. Mr. Trump announced at the press conference that India wants to purchase 'billions of dollars' worth of defense equipment, including fighter jets from the U.S., and Washington is likely to become the 'number one' supplier of oil and gas to India. He also mentioned that some of the discussed items were ambitious, stating that India aims to benefit from U.S. nuclear technology by reforming its laws, which would provide safe, clean, and affordable electricity for millions of Indians and generate tens of billions of dollars for the U.S. civilian nuclear industry. Narendra Modi also stated that his country wants to double trade with Washington by 2030. Additionally, according to Donald Trump, the path for exporting American F-35 fighter jets to India will be cleared. The F-35 jets were showcased at an airshow held in India this week. Hours before the meeting between the U.S. and Indian leaders, Donald Trump signed an executive order that serves as a roadmap for imposing reciprocal tariffs on any country that imposes tariffs on U.S. imports. Mr. Trump referred to India as one of the countries that imposes the highest tariffs on American goods when signing this executive order. During his previous presidency, Donald Trump had a warm relationship with Narendra Modi. However, the leaders of the two countries expressed optimism at their joint press conference that trade negotiations to resolve disputes would soon yield results. A senior official from the Trump administration also told reporters that the two countries might reach an agreement within this year. Before the joint press conference, Narendra Modi, while sitting next to Donald Trump in the Oval Office, told reporters: 'What I deeply appreciate and learn from President Trump is that he keeps national interests paramount. I, too, place India's national interests at the forefront of everything.' The United States currently has a $45.6 billion trade deficit with India, and according to World Trade Organization data, while India's average tariff on American goods is about 12%, the U.S. tariff is only about 2.2%. Mr. Trump has repeatedly called for an end to 'unfair trade practices by various countries' with the U.S. and considers 'reciprocal tariffs' as a solution. India is also a major source of immigrants to the United States, some of whom are present in the country illegally. Before meeting Donald Trump, Narendra Modi met with his senior advisor, Elon Musk, as well as Tulsi Gabbard, the new Director of National Intelligence in the U.S.