India has benefited from the decline of the U.S.-China relationship and is viewed as a possible ally in countering China’s rise politically

India is in talks with the United States for the purchase and co-production of combat vehicles as well as finalising a fighter jet engine deal, people familiar with the matter said. Trump asked Modi in a call last month to buy more U.S.-made security equipment and move "toward a fair trading relationship".

This is a repeat of the tariffs he imposed in March 2018 during his first term as US President. The removed tariffs on steel and aluminium imports from India on July 3, 2023 as part of a broader trade resolution announced during Prime Minister Narendra Modi’s visit to Washington.

Narendra Modi’s visit to the White House this week feels suspiciously like a victory lap for an Indian leader whose economy hasn’t had a great deal to celebrate of late.

With India’s steel industry already facing global competition, higher US tariffs could lead to a slowdown in exports as well as increased production costs, according to the Financial Times.