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Trump talks trade with Modi after ordering new tariffs

GenevaTimes by GenevaTimes
February 14, 2025
in International
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Jude Sheerin

BBC News

Reporting fromWashington DC

Watch: Trump and Modi say meeting will revolve around trade

US President Donald Trump is hosting Indian Prime Minister Narendra Modi at the White House for talks on trade.

Modi’s two-day visit comes as Trump ordered that US trading partners should face reciprocal tariffs – tit-for-tat import taxes to match similar duties already charged by those countries on American exports. 

Immigration was high on the agenda, with Trump expected to ask India to take back thousands of undocumented immigrants. 

Writing earlier on X, Modi said he had also discussed space, technology and innovation at a meeting with Trump ally Elon Musk. 

Trump and Modi have developed a personal rapport over the years, despite friction over trade.

“We’ve had a wonderful relationship,” Trump said as he welcomed his visitor to Washington DC on Thursday.

Modi said: “I firmly believe with Trump we will work with twice the speed we did in his first term.”

“They’re going to be purchasing a lot of our oil and gas,” Trump added. “They need it. And we have it.”

Shortly before their bilateral, Trump ordered his advisers to calculate broad new tariffs on US trading partners around the globe, warning they could start coming into effect by 1 April.

Watch: Trump says tariffs could cause prices to ‘go up short term’

In a news conference in the Oval Office, the president told reporters that “our allies are worse than our enemies”, when it comes to import taxes.

“We had a very unfair system to us,” the Republican president said before meeting Modi. “Everybody took advantage of the United States.”

The White House also issued a news release that fired a trade shot across the bows of India and other countries.

The document noted that the average US tariff on agricultural goods was 5% for countries to which Washington had granted most favoured nation (MFN) status.

“But India’s average applied MFN tariff is 39%,” the White House fact sheet said.

“India also charges a 100% tariff on US motorcycles, while we only charge a 2.4% tariff on Indian motorcycles.”

Watch: Elon Musk meets with Prime Minister Narenda Modi in DC

On Thursday Trump acknowledged the risks of his tariff policy, as economists warned such import taxes could drive up consumer prices.

“Prices could go up somewhat, short term, but prices will also go down,” he said in the Oval Office.

But he argued the policy would boost American manufacturing and the country would be “flooded with jobs”.

Trump has already placed an additional 10% tariff on imports from China, citing its production of fentanyl, a deadly opioid that has stoked a US overdose epidemic.

He has also readied tariffs on Canada and Mexico, America’s two largest trading partners, that could take effect in March after being suspended for 30 days.

On Monday, he removed exemptions from his 2018 steel and aluminum tariffs.

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