Washington, DC, February 14, 2025 – US President Donald Trump has announced that India will face reciprocal tariffs, meaning the US will match any duties and taxes that New Delhi imposes on American goods.
Trump Pushes for Fair Trade
During a joint press conference with Prime Minister Narendra Modi, Trump made it clear that he wants a level playing field.
“We’re just going to do it the easy way,” Trump said. “Whatever you charge, we charge.”
Trump criticized India’s high tariff rates, especially on US-made cars. He described India as one of the highest tariff nations in the world and called for changes in trade policies.
“I had discussions with India in the first term about their high tariffs, but I was unable to get a concession,” Trump said. He added that while he doesn’t blame India, its strong trade barriers make it difficult for US companies to sell products there.
India and US to Negotiate New Trade Agreement
Despite Trump’s firm stance on tariffs, both countries have agreed to negotiate a new trade deal by fall 2025. Indian Foreign Secretary Vikram Misri confirmed that discussions will focus on market access, reducing tariffs, and eliminating trade barriers.
Modi also agreed to limit tariffs on US products and increase energy imports from the US. India currently imports $15 billion worth of American gas, which could rise to $25 billion under the new agreement.
Boosting Military and Security Ties
Trump and Modi also discussed expanding defense cooperation. Trump announced that the process to sell F-35 fighter jets to India has started. However, Vikram Misri clarified that India has not yet issued a request for such an advanced platform.
The two leaders also reaffirmed their commitment to fighting terrorism. Modi praised Trump for approving the extradition of Tahawwur Rana, who was convicted in India for his role in the 2008 Mumbai attacks. The US Supreme Court recently rejected Rana’s appeal, clearing the way for his return to India, where he is expected to face the death penalty.
“India and the US will stand strongly together in the fight against terrorism,” Modi declared. He emphasized the need for concrete action against cross-border terrorism and thanked Trump for his support.
Strengthening the US-India Strategic Partnership
Both leaders expressed their commitment to deepening economic and military ties. They announced a new framework to expand trade, boost energy cooperation, and enhance defense collaboration.
With negotiations set to continue in the coming months, the US-India relationship is poised for significant changes in trade, security, and global diplomacy.
