Modi leaves Washington empty-handed as Trump doubles down on tariffs

Since taking office less than a month ago, Mr Trump has doled out increased tariffs to Canada, Mexico and China — the first two which are now on pause — and been indicating many, if not all, of the US’ trading partners were in the firing line.

From a purely numbers perspective, India was always a sitting duck.

Trade between the two countries has long been a thorn in the president’s side.

During his first term, Mr Trump labelled India “the tariff king”, stating India charges tariffs of 100 per cent on some US products.

For the last 40 years, the US has imported — and paid for — more goods from India than India has from the US, leaving the Western nation in a constant trade deficit.

Last year, India shipped more than double the amount of goods to the US than it imported — $US87 billion compared to $42 billion.

Mr Modi, who met with Mr Trump in Washington overnight, was hoping the strong bond between the leaders of the world’s two largest democracies might get his country a free pass.

But his hopes were misguided.

Just hours before they met, Mr Trump announced a plan for reciprocal tariffs on every country that puts duties on US imports.

That set the stage for their talks, which covered everything from trade to terrorism, and featured an uncomfortable moment with an Indian reporter and the creation of a new, slightly awkward slogan.

Here are the key takeaways from their meeting.

Trade and tariffs

During their post-meeting press conference, Mr Trump made his feelings on India’s tariff system loud and clear.

Standing next to Mr Modi, he said it was “very hard to sell into India because they have trade barriers, very strong tariffs”.

“Prime Minister Modi recently announced the reductions to India’s unfair, very strong tariffs that limit us access to the Indian market, very strongly,” he said.

“And really it’s a big problem I must say.”

But he indicated his new reciprocal tariff regime may temper that disdain.

“Whatever India charges, we charge them, so frankly it no longer matters to us what they charge.”

The leaders agreed to work together to resolve the trade concerns, possibly before the end of the year.

The pair also announced their teams are drafting a “mutually beneficial” trade agreement, with a target of more than doubling bilateral trade to $US500 billion by 2030.

Mr Modi indicated India would increase its oil and gas purchases from the US “to ensure Indian’s energy security”.

He also spoke about the role the US plays in “India’s defence preparedness” and suggested it would buy more military equipment from the US.

Mr Trump said his country would “ultimately provide India” with F-35 stealth fighter jets, but an Indian spokesperson said that was only a proposal.

India and America reaching ‘MEGA’ prosperity

Mr Modi’s statement was peppered with acronyms straight out of a satirical corporate playbook, but one stood out.

He likened his vision for India to become a fully developed nation by its 100th anniversary of independence, known as Viksit Bharat 2047, to Mr Trump’s plan to “make America great again”.

“If I say in the language of America, developed India means make India great again, i.e. ‘MIGA,'” Mr Modi said.

“When the United States and India work together, i.e. ‘MAGA’ plus ‘MIGA’, the ‘MEGA’ partnership for prosperity is formed.

“And this mega spirit gives new scale and scope to our goals.”

Although it’s not entirely clear what the ‘E’ in ‘MEGA’ would stand for.

Immigration tensions

Mr Modi lauded praise on Mr Trump for putting the US’ national interest first.

“One thing that I deeply appreciate, and I learned from President Trump is that he keeps the national interest supreme,” he said.

“And like him, I also keep the national interest of India at the top of everything else.”

But Mr Trump sees one threat to his country’s national interest as coming directly from India.

It’s the largest source of illegal immigrants to the US after Latin America.

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Last week, the US deported more than 100 Indian nationals it says were illegal immigrants.

Another flight of immigrants is expected to land in India later this week.

The first flight caused a political headache for Mr Modi, after opposition politicians erupted in protest over allegations the immigrants were handcuffed and chained during their deportation.

India’s Foreign Secretary Vikram Misri told reporters after the meeting that Mr Modi made it clear that India would take back any illegal immigrants proven to be Indian citizens.

He said Mr Modi also emphasised it is both countries’ responsibility to shut down the “ecosystem that thrives on this racket” of helping Indians illegally enter the US.

Extradition of alleged terror attacker

Mr Trump also announced the US would extradite one of the key men accused of orchestrating the 2008 Mumbai terror attacks to India.

India alleges Pakistani-born Canadian businessman Tahawwur Rana provided support for the Pakistani terror group which planned the four-day attack on key Mumbai sites, including The Taj Mahal Palace Hotel.

175 people died, including nine attackers.

Announcing the extradition, Mr Trump described Mr Rana as “one of the very evil people of the world”.

Mr Modi thanked him and stated Indian courts would “now take appropriate action”.

It wouldn’t be a Trump press conference without an interaction with a reporter that threatens to go viral, and this one was no exception.

After an Indian reporter asked a question about groups in the US calling for separation from India — a reference to the pro-Khalistan movement — Mr Trump told the reporter to “go louder”, prompting a side glance from Mr Modi.

But it quickly became apparent Mr Trump’s issue was not with the reporter’s volume, but his accent.

“I can’t understand a word he’s saying,” he said.

“It’s the accent. It’s a little bit tough for me.”