Washington, USA – Indian Prime Minister Narendra Modi is set to bring a “gift” for U.S. President Donald Trump during their meeting on Thursday, as he seeks to secure tariff concessions, new business deals, and closer cooperation on China. Modi hopes these gestures will strengthen ties and win favor with the U.S. president.
Trump, who is still within his first month in office, has used the threat of tariffs as leverage to extract new trade agreements, investments, and law enforcement assistance, targeting both allies and adversaries. Although Modi and Trump shared a cordial relationship during the former president’s first term, Trump has criticized India’s trade practices, famously calling the country a “very big abuser.” Trump’s tariffs on steel and aluminum have hit India particularly hard, raising expectations for a tough negotiation.
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Ahead of Thursday’s White House talks, Modi has prepared several offers, including increased purchases of liquefied natural gas, combat vehicles, and jet engines, according to unnamed Indian government officials. There are also potential agreements on U.S. agriculture exports to India and investment in nuclear energy. Modi’s delegation is exploring tariff reductions in various sectors, including electronics, medical equipment, and chemicals. Trump’s team believes these sectors need improvement from India.
“It’s a ‘gift’ for Trump,” said one source close to the discussions, previewing the private meeting. U.S. and Indian officials are also advancing talks on a bilateral trade deal, with hopes of reaching an agreement later this year. A senior Trump administration official outlined plans for a stronger defense partnership, including procurement and joint defense exercises. “On energy, we have the ability to literally power the Indian economy with U.S. energy sales, and the president believes both of those things can bring down the trade deficit.”
One sensitive issue that could surface is the case of billionaire Gautam Adani, whose company is under investigation by the U.S. Department of Justice for an alleged bribery scheme. Adani has denied any wrongdoing. Another potential complication is an alleged Indian intelligence plot to assassinate a Sikh activist in the U.S. during the previous administration. However, a U.S. official emphasized that President Trump prioritizes the safety of every American.
The tariff issue, however, is expected to take center stage. Richard Rossow, head of the India program at the Center for Strategic and International Studies, predicts a challenging conversation. “It’s going to be a boxing match,” he said. “India is willing to take a few hits, but there’s a limit.” The U.S. currently faces a $45.6 billion trade deficit with India, and U.S. tariffs remain lower, with an average rate of 2.2%, compared to India’s 12%. Trump’s administration has made it clear that it will impose reciprocal tariffs on countries that impose duties on U.S. imports, escalating fears of a global trade conflict.
What Trump Wants
In addition to trade and defense matters, Trump is expected to seek more cooperation from India on addressing unauthorized immigration. India is a major source of both legal and illegal immigration to the U.S., particularly among tech workers on visas. The issue is a key concern for the Trump administration.
Modi is also expected to meet with billionaire Elon Musk during his Washington visit, according to two sources familiar with the plans. Musk, a prominent Trump ally, may discuss the potential for his Starlink company to enter the South Asian market.
India’s strategic position in the U.S. efforts to counter China is another key area of discussion. Many in the Trump administration view China as the primary U.S. rival. Modi shares concerns about China’s military expansion and competition in global markets. There is also fear within India that Trump might negotiate with China in a way that excludes India, according to Mukesh Aghi, president of the U.S.-India Strategic Partnership Forum.
Despite the focus on bilateral relations, trade, defense, and immigration, the issue of China will likely be an underlying theme throughout the meeting, according to Lisa Curtis, a former White House official. “Even though much of the talk will be on the bilateral relationship, on trade, on immigration, defense purchases, the China thread will weave through the meeting,” she said.
While India has maintained its stance of “strategic ambiguity” in international conflicts, it continues its close ties with Russia, despite the ongoing war in Ukraine. India remains a significant consumer of Russian energy, even as Western nations reduce their consumption due to the conflict.
As Modi prepares for this high-stakes meeting, all eyes will be on how these complex issues—tariffs, defense, energy, and China—will shape the future of U.S.-India relations.
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