Sat Feb 15 09:43:11 UTC 2025: ## Modi and Trump Announce Mega Energy Deal Amidst Rising Trade Tensions

**New Delhi/Washington D.C.** – In a high-stakes meeting marked by both cooperation and confrontation, Indian Prime Minister Narendra Modi and US President Donald Trump announced a major energy deal, with India agreeing to import significantly more American oil and gas. The agreement comes amidst a backdrop of escalating trade tensions, with Trump recently threatening sweeping reciprocal tariffs on US trading partners, including India.

While both leaders engaged in mutual praise, Trump openly criticized India’s high tariffs, calling them a “big problem.” In response, Modi expressed willingness to reduce tariffs on US goods, facilitate the repatriation of undocumented Indian nationals, and increase purchases of American military equipment, including potentially F-35 fighter jets. Modi coined the phrase “Make India Great Again” (MIGA), framing the partnership as a “Mega” alliance for prosperity.

Trump highlighted the energy deal as a key step towards addressing the US trade deficit with India, stating that the US “has it” and India “needs it.” Economists offered mixed reactions. While some viewed the energy deal as a low-hanging fruit for both nations, others warned that purchasing US oil and gas might prove costly for India due to the strong dollar and potentially increased tariffs down the line.

Beyond energy, the leaders addressed the issue of immigration. Trump announced the extradition of a suspect allegedly involved in the 2008 Mumbai terror attacks, a move praised by Modi. Modi also pledged to cooperate with the repatriation of Indian nationals residing illegally in the US. This follows the recent deportation of 104 Indian nationals, with more deportations expected.

The meeting occurred against a backdrop of Trump’s broader trade policy, which includes new tariffs on multiple trading partners, and an attack on US allies by US Vice President JD Vance. Trump justified his tariff strategy, claiming it would boost American manufacturing and job creation. The White House underscored the disparity in tariffs between the US and India, highlighting India’s significantly higher tariffs on certain US goods. The potential impact of these tariffs on the newly formed energy partnership remains to be seen.

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