Modi-Trump meet sharpens focus on 4Ts — trade, tariffs, terror and tough talk

The discussions between Prime MInister Narendra Modi and US President Donald Trump have centred around ‘4Ts’ of trade, tariffs, terror, and tough talk.

The major focus of Modi’s visit was to assure Trump that India is not a tariff-heavy country and that it is ready to work together to resolve trade issues to avoid a trade war. India has a trade surplus with the United States that Trump does not like. He has further long slammed India for being a “big abuser” of trade. He repeated that claim on Thursday and said that India imposes some of the highest tariffs on US products.

Trump has said outstanding trade issues with India can be resolved by selling more US energy and defence products to India.

‘India & US to double trade by 2030’

Last year, the United States had a trade surplus of around $45 billion with India. However, Trump claimed the deficit was around $100 billion.

To address the deficit, Trump said the United States will sell US oil, gas, and defence goods like F-35 fighter planes to India.

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On his part, Modi said that India would work towards doubling bilateral trade by 2030.

India & US seek middle ground on tariffs

Earlier in the day, Trump had announced ‘reciprocal tariffs’, which would mean that the United States would impose the same tariffs on a country’s products that that country imposes on US products.

Before their meeting, it was reported that India was considering reducing tariffs in at least a dozen sectors, such as electronic, medical, and surgical equipment and some chemicals to raise imports from the United States to address Trump’s concerns.

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At the press conference, Trump defended tariffs and said Modi was a “tough negotiator” when it came to trade. On his part, Modi strategically avoided speaking on the issue.

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Shared concerns on terrorism

Trump in the press conference announced the extradition of Tahawwur Rana, a Canadian national of Pakistani origin who is accused of being planning the 26/11 Mumbai terrorist attacks. He is linked to Pakistani-American David Coleman Headley, who helped plan the Mumbai attacks.

There is also indication that others wanted by India, possibly terrorists linked to the Khalistan movement, could be extradited in near-future.

Tough talk

Even as both leaders praised each other, with Trump calling Modi a “tough negotiator”, there was plenty of ’tough talk’.

At the press conference, Trump said he is committed to resolving the Ukraine war. Even as he praised India and Trump, he remained tough in his stand on tariffs, saying that reciprocal tariffs were fair as the United States would not subject other countries to the same treatment that they subject the United States to.