Trump Agrees to Trade Talks with India amid $45.6 Bln Deficit

US President Donald Trump said on Thursday that Indian Prime Minister Narendra Modi had offered to discuss easing tariffs and buying more American oil, gas and fighter jets, among other possible concessions that have yet to resolve trade disputes.

The two leaders spoke at the White House, just hours after Trump criticized the environment in which American companies operate in India and unveiled plans to impose tariffs on any country that imposes tariffs on American imports.

"Prime Minister Modi recently announced reductions in the unfair and very strong tariffs that India has been imposing that severely limit our access to the Indian market … and I would say that is a really big problem," Trump said, according to Reuters.

The two leaders agreed to work toward a deal to resolve trade concerns. Indian Foreign Minister Vikram Misri said after the meeting that such a deal could be concluded within the next seven months. A senior Trump administration official said the deal could be announced this year.

Some of the agreements reached by the two leaders were ambitious, with India seeking to increase its purchases of US defense equipment including fighter jets “by the billions of dollars” and potentially make Washington the “number one supplier” of oil and gas, Trump said at a joint news conference with Modi.

Modi said New Delhi wanted to double trade with Washington by 2030. Long-planned nuclear energy cooperation, which the two leaders discussed, faces legal challenges.

“We are paving the way for the supply of F-35 fighter jets to India,” Trump said.

Misri later clarified that the fighter jet deal was just a proposal at this stage without any formal process. The White House did not respond to a request for comment on any deal.

Although Trump had a good relationship with Modi in his first term, he renewed his assertion on Thursday that Indian tariffs were “too high” even as his steel and aluminum tariffs hit metals producer India.

"We are treating India the same way. Whatever tariffs India imposes, we will impose the same," Trump said during the press conference.

Meantime, the United States has a trade deficit of $45.6 billion with India.