Indian Prime Minister Narendra Modi is preparing tariff reductions ahead of his meeting with U.S. President Donald Trump, aiming to boost American exports and prevent a potential trade standoff. The move comes as Washington signals reciprocal tariffs on multiple nations, with India under scrutiny.
Modi's visit to the United States on Wednesday and Thursday comes amid growing trade friction. Trump has previously criticized India, calling it a "very big abuser" and pushing for increased American exports, particularly in defense and security equipment.
Indian officials said New Delhi is considering tariff cuts across at least a dozen sectors, including electronics, medical devices, surgical equipment, and chemicals. Reductions in duties on dish antennas and wood pulp—products primarily sourced from the U.S.—are also being explored as part of a potential mini trade deal.
A senior official described the effort as an attempt to avoid a trade war, referencing the ongoing U.S.-China tensions, where Trump imposed 10% tariffs on Chinese goods, leading Beijing to retaliate with duties on U.S. energy exports.
India’s Trade Adjustments
New Delhi has already lowered its average import tariff from 13% to 11% in its latest budget, including reductions on high-end motorcycles and luxury cars. The government is also reviewing surcharges on more than 30 items, including solar cells and automobiles.
Despite past criticisms of India’s trade practices, Trump has maintained a cordial relationship with Modi, calling him "fantastic".
Trade and Diplomatic Relations
The United States remains India’s largest trading partner, with bilateral trade exceeding $118 billion in 2023/24. India posted a $32 billion surplus, a key issue in Washington’s trade agenda.
While the upcoming talks will center on trade, defense, and technology cooperation, discussions have been overshadowed by recent deportations of Indian nationals from the U.S. Officials say the meeting will provide political direction, with detailed trade negotiations expected to follow.
As the U.S. increasingly views India as a strategic counterbalance to China, the strength of economic ties will be closely watched in both Washington and New Delhi.
Read next
06:00
As the world shifts toward clean energy at an ever-accelerating pace, large economies are scrambling to secure reliable supply chains for rare earth minerals. These minerals, once seen as mere industrial components, have become a political tool in the global power struggle
05:09
U.S. National Security Advisor Mike Waltz admitted on Tuesday that he created the Signal chat where sensitive details about U.S. strikes on Yemen were shared — and called the episode “embarrassing.”
04:07
Thai Prime Minister Paetongtarn Shinawatra will face a no-confidence vote in parliament on Wednesday, marking an early test of the strength and unity of her ruling coalition after two days of fierce opposition scrutiny.
03:19
Signal president Meredith Whittaker has defended the platform’s security after senior Trump administration officials mistakenly included a journalist in a private Signal group chat discussing U.S. military action against Yemen’s Houthis.
01:47
At least 15 people have died as wildfires continue to ravage South Korea’s southeastern region, Yonhap News Agency reported on Wednesday.
What is your opinion on this topic?
Leave the first comment