Trump Urges Modi to Buy More US Defense Equipment and Pursue Fair Trade Ties

In a significant step towards bolstering the US-India relationship, President Donald Trump and Indian Prime Minister Narendra Modi held their first telephonic conversation since Trump’s second-term inauguration.
The call, described as "productive" by the White House, focused on advancing strategic ties, deepening cooperation in regional security, and addressing key bilateral issues such as trade and defense.
Call Highlights
During the call on January 27, 2025, Trump emphasized two key demands:
Increased Purchase of US Defense Equipment: The US president underscored the importance of India increasing its procurement of American-made security equipment to strengthen defense ties.
Fair Trade Practices: Trump reiterated his administration's call for a more balanced trade relationship, addressing the trade surplus India enjoys with the US and the tariff disparities.
While the Indian statement highlighted the commitment to mutually beneficial partnerships and the advancement of trade, technology, investment, energy, and defense cooperation, the US readout placed a stronger emphasis on Trump’s demands related to trade and defense.
India-US Trade Dynamics
The issue of fair trade has been a cornerstone of Trump’s foreign policy approach. India’s trade surplus with the US stood at over $41 billion in 2024, a figure that has drawn criticism from the Trump administration. The president has previously referred to India as a "tariff king" due to high import tariffs on US goods compared to lower tariffs on Indian exports.
In his first term, Trump terminated India’s beneficiary status under the Generalized System of Preferences (GSP), citing trade barriers that negatively impacted US commerce. Although India has taken steps to address some of these concerns, including reducing tariffs in specific sectors and increasing energy imports from the US, the trade relationship remains a focal point of contention.
The Trump administration has also encouraged India to engage in discussions aimed at reducing the trade deficit and exploring a comprehensive trade pact. However, the absence of immediate tariff hikes should not be interpreted as a sign of stability in the economic relationship.
Defense Cooperation: A Growing Partnership
The call also highlighted the US’s push for deeper defense ties with India. Over the past two decades, India has significantly increased its purchase of US defense equipment, with deals such as the $3 billion Predator drone agreement.
However, the US continues to express concerns over India’s military ties with Russia, its defense procurements from other non-US partners like France and Israel, and its focus on domestic manufacturing under the "Make in India" initiative.
The White House statement suggests that increased acquisition of American defense equipment might be a prerequisite for deepening security cooperation, including co-production initiatives. The intertwining of trade and defense policies indicates a shift in the US strategy towards India.
Potential Modi Visit to the White House
The White House statement hinted at plans for Prime Minister Modi’s visit to Washington, possibly as early as February, following his attendance at an Artificial Intelligence Summit in Paris. While neither side has officially confirmed the visit, speculation is rife that the two leaders may meet to solidify the strategic partnership and discuss pressing issues.
The meeting would underscore the growing importance of US-India ties, with a focus on regional security, economic cooperation, and collaboration under the Indo-Pacific Quad framework.
The US statement reaffirmed both nations’ commitment to advancing the Quad partnership, with India set to host Quad leaders later this year.
Regional and Global Issues
In addition to trade and defense, the leaders discussed various regional and global issues, including security in the Indo-Pacific, the Middle East, and Europe. The US explicitly mentioned the Indo-Pacific region twice in its statement, reflecting concerns over China’s activities in the area. Interestingly, the Indian statement omitted any direct reference to the Indo-Pacific or the Quad, instead broadly affirming a commitment to global peace, prosperity, and security.
External Affairs Minister S. Jaishankar’s participation in the Quad foreign ministers’ meeting earlier this month, along with his attendance at Trump’s inauguration, further highlights India’s strategic alignment with the US and its allies, Australia and Japan.
Social Media Statements
Following the call, Prime Minister Modi took to social media, expressing his delight at speaking with Trump and congratulating him on his historic second term. “We are committed to a mutually beneficial and trusted partnership. We will work together for the welfare of our people and towards global peace, prosperity, and security,” Modi tweeted.
In contrast, President Trump has not yet publicly commented on the conversation, either on his official account or on Truth Social.