Modi Seeks to Dodge Trump's Trade Wrath in White House Summit
(Bloomberg) -- Supply Lines is a daily newsletter that tracks global trade. Sign up here.
Why American Mobility Ground to a Halt
Saudi Arabia's Neom Signs $5 Billion Deal for AI Data Center
SpaceX Bid to Turn Texas Starbase Into City Is Set for Vote in May
Cutting Arena Subsidies Can Help Cover Tax Cuts, Think Tank Says
When Prime Minister Narendra Modi last met President Donald Trump five years ago, the US leader stood before a crowd of 100,000 cheering Indians in Modi's home state of Gujarat and declared: 'America will always be faithful and loyal friends to the Indian people.'
Modi is likely to find the US president in a decidedly less celebratory mood when the two leaders meet in Washington Thursday.
The head of the world's most populous nation faces a minefield in negotiations with Trump, who has signaled that India remains a potential tariff target despite a deepening partnership between the two countries.
Modi has rolled out a series of concessions to Trump in an effort to mollify the US leader and preserve his nation's access to its largest trading partner. In the last few weeks, India has slashed tariffs on items from motorcycles to luxury cars, agreed to take planeloads of undocumented migrants and pushed to ramp up purchases of US energy.
'Prime Minister Modi knows that Trump's priorities are deportations of illegal Indians and India's high tariffs, so Modi has prepared for this, and he is seeking to preempt Trump's anger over these issues,' said Lisa Curtis, a former Trump aide who directs the Indo-Pacific Security Program at the Center for a New American Security.
Read: Modi Returns to US With Lost Clout as Stock, Economic Boom Fades
That may not be enough. Trump has repeatedly threatened tariffs on India in return for its high levies on US goods and he's vowed to soon enact 'reciprocity' on all nations when it comes to import duties — a move that would hit India harder than most major trade partners.
Underscoring that view, top Trump economic aide Kevin Hassett told CNBC this week that India's tariffs on US imports were 'enormously high' and said Modi 'has got a lot to talk about with the president.'
And White House Press Secretary Karoline Leavitt said Wednesday she expected the tariffs to be announced before Modi visited the White House.
'It's very simple logic as to why the President wants to impose reciprocal tariffs,' Leavitt said. 'It's the golden rule, which we all learned when we were growing up in school, treat others the way you want to be treated.'
Modi arrived in Washington on Wednesday and met with Trump's newly confirmed Director of National Intelligence Tulsi Gabbard, with the two discussing bilateral intelligence cooperation, according to a readout from India's External Affairs Ministry. Modi is set to meet with Trump in the Oval Office on Thursday afternoon.
India's stock market slumped ahead of Modi's meeting with Trump, with the MSCI India Index on Wednesday touching its lowest level since early June, taking its losses for the week to as much as 4.6%.
Some in Modi's administration are concerned that his early overtures may not yield much from the new president, and say it's not clear what, if anything, Trump is seeking from New Delhi, people familiar with the matter said. They also worry that India has few backers among immigration and foreign policy hardliners in Trump's government, in particular on the issue of H-1B visas for skilled workers, they said.
Read: Why Trump's Inner Circle Is So Divided on H-1B Visas: QuickTake
The unease underscores the stakes for India going into Thursday's meeting. Modi is among the earliest batch of foreign leaders to meet with Trump since he returned to office, and their summit follows a series of personal phone calls and lower-level meetings between their governments.
'President Trump and Prime Minister Modi are focused on deepening the US-India strategic partnership across defense, energy, technology and fair trade,' said Brian Hughes, a US National Security Council spokesman, in a statement, adding that the leaders share 'warm ties.'
India's Ministry of External Affairs didn't immediately respond to an email seeking further information.
Another issue hanging over the gathering that might not be formally discussed is the US allegations of bribery leveled during the Biden administration against Indian billionaire Gautam Adani, a close associate of Modi. Adani has denied the charges, and it now rests with Trump's Justice Department to determine how aggressively to pursue the case.
Read: Adani Builds US Influence Machine While Trump Reins in DOJ Cases
For all their differences, there's little doubt that India has become an increasingly important partner for the US, especially when it comes to pushing back on China. American companies including Apple Inc. and Starbucks Corp. have turned to India as an engine of growth or as an alternative to having supply chains moored to China. India is also an active partner with the US, Australia and Japan in the 'Quad,' an informal bloc with shared economic and security interests that often draws Beijing's criticism.
At the same time, India is a leader of the so-called Global South, particularly through the BRICS grouping with Brazil, Russia and South Africa that is frequently at odds with US priorities. And India continues to be a major buyer of Russian oil and weaponry.
Read: India Is Building a Sanctions-Proof Supply Chain for Russian Oil
Despite all that, ties with India have generally received bipartisan support in Washington and the US president has been seen positively in India. Trump's 2020 visit — billed 'Namaste, Trump' — received blanket coverage in the Indian media, and was preceded a year earlier by a trip Modi took to Houston dubbed 'Howdy, Modi.'
But Trump has long used trade balances as a lens for rendering judgment on other nations, and that tendency isn't likely to change. The $41 billion US trade deficit with India in 2023 put it 10th overall, just behind South Korea. On the campaign trail, Trump said India was a 'very big abuser' of its trade ties with the US.
Modi is going into this week's meeting prepared to discuss further reducing India's import duties, as well as purchasing more energy and defense equipment from the US, Bloomberg News has reported.
Harsh Shringla, a former Indian ambassador to the US and former Indian foreign secretary, signaled that's the approach most likely to resonate with Trump.
'The way out of this is to provide the United States a window that would enable it to get a better access to the Indian market, and vice versa,' he said.
--With assistance from Justin Sink, Akayla Gardner, Shruti Srivastava, Hadriana Lowenkron and Josh Wingrove.
(Adds details of Modi's arrival in Washington in paragraph 10 and link to X post)
Elon Musk's DOGE Is a Force Americans Can't Afford to Ignore
The Game Changer: How Ely Callaway Remade Golf
How Oura's Smart Ring Bridged the Gap From Tech Bros to Normies
Why Fast Food Could Be MAHA's Next Target
Trump's Tariffs Make Currency Trading Cool Again After Years of Decline
©2025 Bloomberg L.P.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


CNN
23 minutes ago
- CNN
Ukrainian boxer to Trump: ‘Open your eyes'
Ukrainian boxer to Trump: 'Open your eyes' World heavyweight boxing champion Oleksandr Usyk shared a message for President Trump in an interview with CNN, asking him to help Ukraine as it continues its fight against a full-scale Russian invasion. 00:54 - Source: CNN Why China doesn't need the US auto market If there is one thing to be learned from Auto Shanghai - China's largest automobile show - it's that China has dozens of car brands that can rival Western ones. BYD surpassed Tesla's profits, but other EVs like those made by Zeekr, Xiaomi and Chery are quickly joining the race. CNN's Marc Stewart took a rare test drive of Zeekr's new 7GT. 00:44 - Source: CNN Analysis: Trump is in a crisis of his own making Trump tells President Vladimir Putin to stop after Russia launched its deadliest wave of attacks on Kyiv in nine months. This comes days after Trump said the US would walk out on efforts to make a peace deal in Ukraine if it didn't see progress. CNN's Nick Paton Walsh breaks down the latest. 01:03 - Source: CNN Russia launches strikes across Ukraine Russia launched waves of drones and ballistic missiles at multiple targets across a broad swath of Ukraine overnight killing at least four people in the capital Kyiv and wounding around 40 across the country. 00:32 - Source: CNN German leader on 'terrible' impact of Trump's tariffs In an interview with CNN's Jake Tapper, German Chancellor Friedrich Merz talks about the impact President Trump's tariffs are having on the auto industry. 01:13 - Source: CNN Greta Thunberg sails to Gaza Greta Thunberg has set sail with eleven other activists to Gaza. The activist group they're part of, The Freedom Flotilla Coalition, is attempting to bring aid and raise international awareness over the ongoing humanitarian crisis in the territory. 00:59 - Source: CNN Record rain floods Mexico City, traps people Mexico City was hit with record rainfall that didn't relent for more than five hours Monday night, marking the heaviest rain since 2017, according to water management officials. CNN's Valeria León walks a flooded avenue of the nation's capital after emergency crews worked through the night to rescue several trapped drivers. 00:43 - Source: CNN Gaza aid distribution turns deadly for third consecutive day For a third consecutive day, Palestinians came under fire while trying to receive aid from a distribution site in Gaza. According to the Palestinian Ministry of Health and Nasser hospital, at least 27 people were killed and dozens injured on June 3. 00:56 - Source: CNN Analysis: Why Ukraine's drone attack on Russia just changed the world CNN's Jim Sciutto explains why Ukraine's large-scale drone attack on Russian air bases thousands of miles behind the front lines struck fear into the heart of every global superpower 01:05 - Source: CNN Tomatoes fly at Colombia's largest food fight Around 20,000 revellers gathered in Sutamarchán, Colombia, to throw over 45 tonnes of tomatoes at each other. The Gran Tomatina festival, now in its 15th year, is hosted to celebrate the economy of Sutamarchán, which is centred around tomato production. Mayor Miguel Andrés Rodríguez said "between 70 and 80 percent of families [in Sutamarchán] live off tomatoes. This is a tribute to them." The festival uses tomatoes which are overripe, or otherwise not suitable for consumption. 00:30 - Source: CNN Palestinians shot dead near Gaza aid hub The Palestinian health ministry, hospital officials and multiple eyewitnesses say deadly gunfire killed dozens of Palestinians near an aid distribution site in Gaza on Sunday, with Israel's military denying that its troops fired 'within or near' the aid site. CNN Jerusalem correspondent Jeremy Diamond brings you up to speed on what we know about the weekend chaos. 02:31 - Source: CNN Palestinians describe deadly shooting near aid center in Gaza CNN spoke to multiple witnesses who recounted the deadly chaos that unfolded near a US-backed aid center in southern Gaza after more than 30 Palestinians were killed and dozens injured on Sunday, according to the Palestinian Ministry of Health. The health ministry blamed the Israeli military for the deaths while other witnesses claimed that local security personnel had also opened fire. Gaza Humanitarian Foundation, which runs the aid center, said there had been no gunfire at the site and Israel Defense Forces denied firing on civilians at or close to the site, calling such accusations 'false reports.' 00:55 - Source: CNN Palestinian UN envoy breaks down talking about Gaza's children The Palestinian ambassador to the UN made an emotional address, saying more than 1,300 children have been killed in Gaza since Israel ended the ceasefire in March. 01:19 - Source: CNN Political candidate wears body armor daily CNN's David Culver met César Gutiérrez Priego as he was readying to campaign for office in Mexico City. Gutiérrez Priego, who is running for a seat on the Supreme Court in Mexico, shows Culver the safety precautions he takes with political violence in Mexico at an all-time high. See Culver's full reporting on CNN. 00:53 - Source: CNN Harvard students and faculty speak out against Trump Harvard students and faculty spoke to CNN ahead of commencement as Donald Trump said the university should cap foreign enrollment. The Trump administration has recently sought to cancel $100 million in contracts with the school. 02:03 - Source: CNN Palestinians desperate for food rush US-backed aid site Scores of people rushed over fencing and through barricades in southern Gaza on the first day a US-Israeli-backed aid site was opened. CNN's Jeremy Diamond explains the desperate humanitarian situation that remains in the region. 01:22 - Source: CNN Journalists spit on at Jerusalem Day flag march Ultra-nationalist Israeli Jews chanted anti-Arab slogans as they marched through Jerusalem's Old City to mark Jerusalem Day. CNN's Oren Liebermann describes heavy police presence on the ground. Members of the crowd were seen spitting on journalists, including a CNN producer. 01:50 - Source: CNN Finland's president responds to Russian military activity along border CNN's Erin Burnett speaks with Finland's President Alexander Stubb about his country ramping up its military to deter potential Russian aggression. 02:16 - Source: CNN King Charles stresses Canada's 'self determination' amid pressure from US King Charles III delivered the ceremonial Speech from the Throne in the Canadian Senate. The address marks only the second time in Canadian history that the reigning sovereign has opened parliament, and the third time that the British monarch has delivered the address. 00:42 - Source: CNN Huge ship refloated after nearly crashing into house A larger container ship has been refloated after nearly crashing into a house in Norway. According to local police, the navigator had fallen asleep at the helm. 00:42 - Source: CNN Vehicle plows into crowd in Liverpool Police in the United Kingdom say a man has been arrested after a car plowed into Liverpool fans celebrating during the soccer club's Premier League trophy parade. 01:14 - Source: CNN

23 minutes ago
Trump admin live updates: President to announce 'Trump savings accounts' for parents, guardians
The accounts are part of Trump's megabill. 1:40 As the Trump administration continues to ramp up its focus on Los Angeles and threatens to send troops to the city amid anti-ICE protests, the fallout from President Donald Trump and Elon Musk's feud continues. This comes as Republicans in Congress continue to work on agreeing on language for Trump's "Big Beautiful Bill." Meanwhile, U.S.-China trade talks in London this week are expected to take up a series of fresh disputes that have buffeted relations, threatening a fragile truce over tariffs. President Donald Trump will host a roundtable Monday to formally announce the provision in his massive funding bill called the "Trump savings accounts," which will allow parents and guardians to invest funds in the financial markets on behalf of children, a White House official confirms to ABC News. The savings account would be applicable to children born between January 1, 2025, and January 1, 2029. The government would deposit $1,000 into a tax-deferred, low-cost index fund account that will track the overall stock market for each newborn. Additional contributions can go up to $5,000 annually. When the children reach adulthood, they are able to take out the money to cover things like college or a down payment on a home. "The passage of the One Big Beautiful Bill will literally change the lives of working, middle class families across America by delivering the largest tax cuts in history, increasing the child tax credit, AND by creating this incredible new "Trump Account" program, which will put the lives of young Americans on the right financial path," White House press secretary Karoline Leavitt said in a statement to ABC News. Multiple CEO's from companies, such as Dell Technologies, will appear with Trump to announce billions of dollars in collective investments into "Trump Accounts" for the children of their employees, according to the official. The event comes as the White House works to highlight Trump's so-called "One, Big, Beautiful Bill," as the Senate works through attempting to pass the budget bill and amid explosive criticism from Elon Musk last week. --ABC News' Lalee Ibssa


Bloomberg
24 minutes ago
- Bloomberg
'Diversity Drives Meritocracy' Says Helena Morrissey
US President Donald Trump has sought to abolish diversity, equity and inclusion policies, with America's influence being felt in corporate environments worldwide. A new piece of research from the UK's Diversity Project makes the case for cognitive diversity to boost the performance of investment teams -- if they are well managed. Chair of Diversity Project and former CEO of Newton investment management Helena Morrissey spoke to Bloomberg's Caroline Hepker and Jack Sidders about if diversity actually does deliver better returns. (Source: Bloomberg)