5 Key Takeaways from the US-India Trade Partnership on Trade and Immigration
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Discover the latest updates on the US-India trade partnership, including energy deals, military sales, immigration policies, and Trump’s global tariff strategy.
US-India Trade Partnership Strengthens Amid Key Agreements
Indian Prime Minister Narendra Modi has praised a “mega partnership” with the United States as he and US President Donald Trump finalized a deal for India to increase imports of American oil and gas.
Modi’s two-day visit came at a time when Trump imposed reciprocal tariffs on all US trading partners, including India.
Despite their diplomatic exchange, Trump criticized India’s high trade tariffs, calling them a “big problem.” In response, Modi signaled his willingness to lower tariffs on US goods, accept the repatriation of undocumented Indian nationals, and explore the purchase of US-made fighter jets.
At a joint press conference, Modi adapted Trump’s famous “Make America Great Again” slogan to “Make India Great Again – MIGA.”
1. Energy Deal Aims to Balance the Trade Deficit
Trump emphasized India’s increased commitment to US energy imports, helping to reduce the trade imbalance.
✅ Key Quote: “They need it. And we have it,” Trump said.
India relies heavily on imported oil, making this agreement a strategic move. Radhika Rao, a senior economist at DBS Bank, described it as a “low-hanging fruit” for both nations.
However, Amitendu Palit, a senior research fellow at the National University of Singapore, warned that the deal may still widen India’s trade deficit due to the stronger US dollar, which could make American oil and gas more expensive.
2. Military Sales and Fighter Jet Deals
Trump confirmed that the US will expand military sales to India, with potential purchases of F-35 fighter jets. This aligns with India’s goal of modernizing its defense forces while strengthening US-India defense cooperation.
3. Immigration Agreements and Deportation Policy
Immigration was another major topic during Modi and Trump’s discussions.
- Trump confirmed that the US will extradite a suspect linked to the 2008 Mumbai terror attacks, ensuring he faces justice in India.
- Modi agreed to accept the repatriation of undocumented Indian nationals currently living in the US.
Recently, 104 Indian nationals accused of illegal immigration were deported from the US on a military flight, with another deportation expected soon.
4. Trump’s Aggressive Tariff Strategy
Ahead of the Modi meeting, Trump ordered new tariffs on US trading partners worldwide, with some expected to take effect by April 1.
🛑 Key Tariff Disparities:
- The average US tariff on agricultural goods = 5%
- India’s MFN (Most Favored Nation) tariff = 39%
- India imposes a 100% tariff on US motorcycles, while the US only charges 2.4% on Indian motorcycles
Trump defended these tariffs, arguing that they will boost US manufacturing and create jobs.
🗣 Trump’s Stance: “We had a very unfair system. Everybody took advantage of the United States.”
5. Global Trade War Expands
Beyond India, Trump has already imposed a 10% tariff on Chinese imports and is considering new tariffs on Canada and Mexico, expected to take effect in March.
Additionally, the removal of steel and aluminum tariff exemptions signals a tougher trade stance from the US administration.
✅ Final Takeaway: The US-India trade partnership continues to evolve, balancing economic collaboration, military sales, and diplomatic agreements, despite ongoing trade tensions.
