Trump Demands India Fork Over Billions for US Weapons in Shocking Trade Upset!

US President Donald Trump embraces Indiaโ€™s Prime Minister Narendra Modi in New Delhi in 2020

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US President Donald Trump has urged Indiaโ€™s Prime Minister Narendra Modi to increase purchases of American-made military equipment and to work towards balancing their trade relationship during a phone call on Monday.

According to a statement released by the White House, Trump highlighted the importance of India enhancing its acquisition of American security products and establishing a fair bilateral trading arrangement. The conversation was described as โ€œproductive.โ€

During Trumpโ€™s first term, he and Modi developed a strong rapport, with India serving as a key ally in the USโ€™s strategy to counter Chinaโ€™s growing influence. However, Trump had previously criticized India as a โ€œvery big abuserโ€ in terms of trade during his re-election campaign, pointing out ongoing tensions, including Indiaโ€™s trade surplus with the US, imports of Russian oil, and migration issues.

Experts believe that the relationship between the two countries is likely to remain solid under another Trump administration, although it could continue to be transactional, requiring India to make certain concessions.

The United States is Indiaโ€™s second-largest trading partner, next to China, and data from Indiaโ€™s commerce ministry indicated a $35 billion trade surplus for India with the US from January to November 2024. Trump has previously threatened to impose tariffs on many Brics nations, including India.

In a recent social media update, Modi referred to Trump as a โ€œdear friendโ€ and expressed a shared commitment to a mutually beneficial partnership across various sectors, including security. Trump also mentioned that Modi might visit the White House โ€œprobably in February,โ€ potentially marking one of the first high-profile visits by a foreign leader since Trump took office.

As India continues to diversify its arms suppliers away from Russiaโ€”historically the largest arms exporter to Indiaโ€”it has increasingly turned to the US among others to bridge capabilities in military technology, especially in light of tensions with China.

Modi is also promoting domestic arms manufacturing as part of his vision for India to become a global manufacturing hub, setting an ambitious target of $35 billion for domestic defense production by the decadeโ€™s end, an increase from almost $20 billion last year.

Analysts have underscored the urgency for India to enhance its military capabilities to keep pace with nuclear-armed neighbor China, focusing on areas such as fighter jets, submarines, tanks, helicopters, and small arms. While some local manufacturers possess the capability, India still lacks critical knowledge in areas like military aircraft engines.

The conversation also touched on enhancing security cooperation in the Indo-Pacific region, with both leaders affirming their commitment to the Quad, a strategic alliance that includes Japan and Australia. India is scheduled to host the groupโ€™s leaders later this year.

The phone call coincided with a visit by Indiaโ€™s foreign secretary Vikram Misri to Beijing, where both nations agreed in principle to resume direct passenger flights that had been suspended for five years due to the COVID-19 pandemic and subsequent border issues that strained bilateral relations.

In addition, Trump stated that he and Modi discussed immigration, a focus for the new US administration, with Trump indicating that Modi would take appropriate steps regarding the repatriation of undocumented Indian migrants currently in the US. According to research data, Indians represented the third-largest group of unauthorized immigrants in the US as of 2022, following Mexico and El Salvador.

photo credit: www.ft.com

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Source: USD @ Mon, 12 May.