US President Trump calls for 'fair' trade ties with 'tariff maker' India

Says Modi likely to travel to US in February

US President Donald Trump has grouped India alongside China and Brazil as “tremendous tariff makers”, vowing to impose tariffs on countries he claims harm the United States. During a separate telephonic conversation, Trump urged Prime Minister Narendra Modi to boost India’s procurement of American security equipment to foster a “fair” bilateral trade relationship.

 

“We’re going to put tariffs on outside countries and outside people that really mean us harm. Well, they mean us harm, but they basically want to make their country good. Look at what others do. China is a tremendous tariff maker; and India and Brazil and so many other countries. So we are not going to let that happen any longer,” Trump said at a rally in Florida.

 

This marks the first time Trump has publicly highlighted India as a high-tariff nation since his second term began on January 20.

 

He had frequently labelled India as a “tariff king” during his first tenure.

 

Trump, last week, had reiterated his threat to the 10-member BRICS grouping, which includes India, that he would impose a 100 per cent tariff if it moves to replace the US dollar in global trade.

 

During a telephonic conversation on Monday, Modi and Trump discussed enhancing bilateral cooperation. A White House statement later said: “The President emphasised the importance of India increasing its procurement of American-made security equipment and moving toward a fair bilateral trading relationship.”

 

Modi is expected to travel to the US in February, and immigration will be a key point of discussion, Trump told reporters aboard Air Force One late on Monday. The Ministry of External Affairs, however, did not confirm the February meet and instead said both have agreed to “meet soon at an early mutually convenient date”.

 

Until now, it was expected both leaders would meet at the 5th Quad Summit, set to be held in India later this year.

 

Under the “America First Trade Policy” memorandum, issued shortly after Trump first took office, the new US administration pledged to identify countries for bilateral or sector-specific agreements to secure export market access for American workers, farmers, ranchers, service providers, and other businesses. The United States Trade Representative (USTR) will subsequently make recommendations regarding such potential agreements.

 

Although the memorandum did not name specific countries for higher tariffs, Trump has separately announced that Canada and Mexico will face increased tariffs starting February 1.

 

During Trump’s first term, India and the US held extensive talks on a mini trade deal. While significant progress was made, unresolved issues prevented the deal from being finalised.

 

Trump’s America First Trade Policy also includes imposing global “supplemental tariffs” to counter “unfair and unbalanced trade,” with a focus on practices by countries such as China, Canada, and Mexico. Additionally, an External Revenue Service (ERS) is being established to collect tariffs, duties, and other foreign-related revenues.

 

Immigration issues

 

A potential Modi visit may see Trump emphasise immigration issues. On Monday, Trump expressed confidence that “India will do what’s right” on the issue of illegal immigration of its citizens to the US.

 

Between October 2023 and September 2024, US authorities apprehended 90,415 “Indians” attempting to enter the country illegally. During the same period, the Department of Homeland Security (DHS) deported over 1,100 Indian nationals. DHS estimates there were 220,000 unauthorised Indian immigrants in the US as of 2022, forming part of the nation’s 13.3 million undocumented population.

 

Modi as prime minister has visited the US nine times, so far, more than any other country, with his last trip in September 2024 for the 4th Quad Leaders’ Summit in then President Joe Biden’s hometown of Wilmington, Delaware. He made two visits to the US during Trump’s first term.

 

Trump’s most recent visit to India was in February 2020, when he attended the Namaste Trump event in Ahmedabad.