(Commonwealth Business) Indian Prime Minister Narendra Modi stated that the United States and India have set an ambitious goal of doubling their bilateral trade to $500 billion by 2030. He also emphasized that both nations would work closely to finalize a mutually beneficial trade agreement shortly. The comments came during a press conference that followed a meeting between Modi and then-President Donald Trump in Washington , where both leaders discussed key areas of cooperation.
Modi highlighted that the two countries would focus on strategic sectors like artificial intelligence and semiconductors, recognizing their importance in the modern global economy. Additionally, they aim to strengthen supply chains for crucial strategic minerals vital for various technologies and industries. Modi’s statement emphasized the collaborative nature of the two countries’ future trade relationship, particularly in these high-tech and resource-rich domains.
“The target we’ve set is more than doubling our bilateral trade to reach $500 billion by 2030,” Modi said. He underscored that both countries would work diligently to finalize a trade agreement that would benefit both sides. His remarks suggested that both India and the U.S. were aligned on the necessity of enhancing their economic ties, recognizing the mutual advantages that could be derived from a well-structured trade deal.
A Trump administration official shared that discussions were progressing on a bilateral trade agreement, and there was hope that a deal would be concluded within the current year. This statement further signaled the commitment both sides had to reach a trade accord that would potentially reshape the economic relationship between the two nations.
President Trump, during the same news conference, expressed that India had made significant strides in reducing tariffs on U.S. goods, signaling a more open approach to trade. He highlighted that the two countries would engage in further discussions to resolve existing trade disparities and secure an agreement. Trump also stressed that the U.S. was entitled to a “level playing field” and suggested that the trade imbalance with India could be balanced by increased sales of U.S. oil and gas.
The U.S. trade deficit with India had long been a point of contention, with Trump previously raising concerns about India’s high tariffs during his first term in office. Although efforts to extract concessions from India had not borne fruit in the past, Trump was optimistic about the new strategy that was being put in place. He introduced a “reciprocal tariffs” system, under which the U.S. would match any tariff rate that India imposed on U.S. goods.
Trump was vocal about the challenges of exporting U.S. products to India due to what he described as “strong tariffs” and “trade barriers.” He reiterated that the U.S. would not accept a trade environment where it was at a disadvantage, thus justifying his reciprocal tariffs approach. “It’s very hard to sell into India because they have trade barriers, very strong tariffs,” Trump remarked, emphasizing the need for fairness in trade dealings.
The concept of reciprocity in tariffs, as outlined by Trump, meant that the U.S. would apply the same tariffs that India charged on American goods, creating a more balanced trade framework. He further elaborated that this new system would extend to other countries as well, where the U.S. would apply similar tariff rates to match those imposed by other nations. “We are, right now, a reciprocal nation… We’re going to have whatever India charges; we’re charging them,” Trump declared. This approach, he argued, was a fair way to ensure that trade agreements and policies were equitable.
The discussions between Modi and Trump highlighted a shared vision for expanding trade and cooperation between the U.S. and India. Both leaders acknowledged the potential for growth in their economic relationship and expressed optimism about the path forward, which would involve addressing trade imbalances, reducing tariffs, and fostering collaboration in emerging sectors such as artificial intelligence and strategic minerals. The introduction of reciprocal tariffs marked a significant shift in the trade strategy of the U.S., aiming to create a more balanced and fair trade environment with India and other trading partners.
