Seeking to Avoid Trump Tariffs, India Buys US Oil

WASHINGTON DC, FRIDAY – Amid the onslaught of import tariff hikes by United States President Donald Trump on many countries, Indian Prime Minister Narendra Modi demonstrated his diplomatic prowess. During his visit to Washington DC, Modi employed various tactics of persuasion and charm to avoid a trade war with the US.

"India will buy oil from us. India and the US will work on various good trade agreements," said Trump during a press conference, in the midst of his meeting with Modi on Thursday (13/2/2025) local time or Friday (14/2/2025) Indonesia time.

Trump stated that the US will also increase arms sales to India starting in 2025. The US will sell F-35 fighter jets to India. Both countries pledged to cooperate in combating terrorist groups and addressing the growing influence of China in the region.

If India purchases the F-35 from the US, the country will be akin to the elite group of North Atlantic Treaty Organization (NATO) member states, Japan, and Israel. In addition to being capable of flying at supersonic speeds, the F-35, which is dubbed a flying computer, also possesses stealth technology that makes it difficult to detect by radar.

In the media briefing, Modi also provided a statement. According to him, Delhi and Washington are ambitious to double the trade balance by 2030, reaching 500 billion US dollars. Additionally, he revealed plans for both countries to increase cooperation in the development of artificial intelligence (AI) technology, semiconductors, and the supply chain of strategic minerals.

"The focus of trade in the oil and gas sector is to ensure India's energy security. There will also be investments in energy infrastructure, particularly nuclear power plants," said Modi.

Another area of cooperation is the construction and development of ports, stations, and railway tracks, as well as the installation of underwater cables. All of these are to support the greatest trade routes in the world, to quote Trump.

Modi also took the time to meet with Elon Musk, the owner of Tesla, SpaceX, and X. Musk now heads the Department of Government Efficiency (DOGE). He recently courted controversy by closing the US Agency for International Assistance (USAID). DOGE also intends to lay off thousands of civil servants on the grounds of budget efficiency. According to him, the meeting was productive and in-depth.

Modi is the fourth world leader to visit the US since Trump was inaugurated as US president on January 20, 2025. As soon as he was inaugurated, he immediately launched an attack on import tariffs. Trump's first two targets were Canada and Mexico, the US's immediate neighbors. They were hit with import tariffs of 25 percent each.

Canada and Mexico retaliated. They refused to be blamed for various cases that occurred in the US, especially the problem of illegal immigration and the distribution of fentanyl drugs. As a result of the response from Ottawa and Mexico City, Trump suspended the imposition of tariffs for 30 days until a bilateral political agreement was reached with each country.

Trump imposed the second tariff based on his frustration with the US trade deficit. He imposed this tariff on friendly and enemy countries. "In fact, it is our friendly countries that are going too far in trolling us with high tariffs. Now we are retaliating," Trump said.

Some examples are the European Union which applies a 10 percent import tariff on cars from the US, while the US only imposes a 2.5 percent tariff on European cars. India is the same. Although not a major trading partner of the US, they apply high import tariffs. In fact, India has the status of a most favored nation (MFN).

The US agreement with MFN countries is a maximum import tariff of 5 percent. In reality, India imposes a tariff of 39 percent on agricultural commodities from the US. In the automotive sector, India imposes a 100 percent tariff on imported motorcycles from the US, while the US imposes a tariff on motorcycle imports from India of only 2.4 percent. Trump said that India is one of the most difficult countries to do business with because of their high tariffs.

Even Australia, a country with a trade deficit with the US, was not spared from Trump's tariffs. Initially, Trump said he was considering letting Australia pass on that basis. However, in the afternoon, Trump announced that he would keep the 25 percent tariff on steel, aluminum and other metals imports from Australia.

"These tariffs will hurt the American people for a while, but then prices will come down. Our industry will be flooded with investment as businesses move their production from other countries to the United States," Trump said.

Therefore, Modi came with a strategy. Before visiting Washington DC, India announced its intention to buy defense equipment from the US. Not only that, they also expressed their intention to invest and cooperate in developing military technology with the US.

In a press conference, Modi promised to work with Trump on the issue of illegal immigration. Trump has begun deporting immigrants who enter the US without proper documentation. The Pew Research Center estimates that there are 725,000 illegal immigrants from India in the US. This is the third largest number after immigrants from Mexico and El Salvador.

The majority of Indians try to cross into the US through Canada. According to the Canadian mainstream media, there have been several tragedies. Families from India have frozen to death in the Canadian wilderness where temperatures at night approach 0 degrees Celsius. Some have even died due to extreme snow.

"All Indians who have smuggled into the US are victims of human trafficking syndicates. We will help to crack down on them and bring them back," Modi said.

In retaliation, the US will extradite Tahawwur Hussain Rana, a Canadian citizen involved in the 2008 Mumbai terror attacks. Rana is currently in a US prison. He was arrested in Chicago, Illinois in 2011. Delhi has long asked Washington to extradite Rana so he can be tried in India.

"To borrow a phrase from the US, India will build again for MIGA (Make India Great Again). If MIGA is combined with MAGA (Make America Great Again), we become extraordinary partners for shared prosperity," Modi was quoted as saying by Fox News.

Biswajit Dhar, a development expert at the Council for Social Development (CSD) in New Delhi, told Al Jazeera that Modi was trying to convince Trump to treat India differently. The approach he took was personal so that Trump would believe India was playing fair.

(AP/AFP/Reuters)