Tariff reductions, immigration, trade: Key takeaways from Modi-Trump talks

Prime Minister Narendra Modi and US President Donald Trump are set to discuss trade, defense, and energy cooperation during their highly anticipated meeting on February 13. As Modi embarks on his two-nation visit to France and the US, officials familiar with the agenda revealed that both leaders aim to deepen collaboration across multiple sectors.

Trade, tariffs, and market access on the agenda

Trade remains a central theme, with India reportedly preparing additional tariff cuts to enhance US exports. According to sources cited by Reuters, reductions are being planned across at least a dozen sectors, including electronics, medical equipment, and chemicals. These measures align with India’s broader strategy to boost domestic production while facilitating increased trade with the US.

Kevin Hassett, President Trump’s economic adviser, emphasized the administration’s focus on reciprocal tariffs, stating, “If they go down, we’ll go down.” He noted that while most trading partners impose higher tariffs than the US, the administration is committed to leveling the playing field.

Immigration and strategic alignment

Illegal immigration is expected to be another key discussion point. Recently, the US deported 104 Indian nationals, with another 600 on the final removal list. While the US has taken strict action against illegal migration from other nations, Indian officials believe that New Delhi and Washington share common ground on the issue.

A senior Indian official, speaking anonymously, pointed out that trade and immigration policies are often interconnected. “The Prime Minister and the US President don’t meet to discuss tariffs of individual items. The US is taking action against China over unfair trade practices, but India is not in the same category. We are strategic allies on multiple fronts.”

US military hardware and energy deals in focus

Defense cooperation is expected to be a major discussion point, with the US encouraging India to increase its purchase of American-made military hardware. The Modi administration’s push for self-reliance in defense, under the ‘Atmanirbhar Bharat’ initiative, aligns with Trump’s ‘Make America Great Again’ vision, creating potential synergies in areas like semiconductor production.

Energy collaboration is also on the table, with discussions likely to focus on expanding India’s imports of American energy resources. The two leaders may explore long-term partnerships in liquefied natural gas (LNG) and renewable energy sectors.

Elon Musk, Starlink, and Tesla’s role

Mukesh Aghi, president of the US-India Strategic Partnership Forum, confirmed that market access and a level playing field for US companies would be key discussion areas. He also revealed that discussions surrounding Starlink and Tesla are expected to occur, with a potential one-on-one meeting between Elon Musk and Modi at the White House.

A comprehensive trade agreement?

While a limited trade deal might be explored, Trump has previously dismissed such arrangements in favor of a broader agreement. Aghi suggested that the US and India may work towards a mutually beneficial framework, leveraging their respective strengths in semiconductor technology—India focusing on chips above 15nm while the US specializes in semiconductors below 7nm.