Indian Prime Minister Narendra Modi is preparing additional tariff reductions ahead of his meeting with former President Donald Trump. The move aims to boost American exports to India and prevent potential trade tensions, according to government officials.
Modi’s visit to the U.S. this week coincides with Trump’s consideration of reciprocal tariffs on multiple nations. The move is part of a broader effort to reshape global trade in favor of American interests. Trump has not specified which countries may be affected by the tariffs. He previously criticized India’s trade policies, calling it a “very big abuser” and urging more U.S. security equipment purchases.
India is reportedly considering tariff cuts in at least a dozen sectors, including electronic, medical, and surgical equipment, as well as certain chemicals. These reductions align with India’s domestic production goals. Officials stated they would also encourage increased U.S. exports. Concessions are being considered for products India primarily sources from the U.S. India may also increase imports of items like dish antennas and wood pulp.
Modi is expected to discuss these tariffs with Trump, and India remains open to negotiating a potential mini trade deal. A senior official noted that the visit is intended to prevent a “trade war-like situation similar to what has happened between the U.S. and China.”
Trade tensions between Washington and Beijing escalated after Trump imposed 10% tariffs on Chinese imports. In response, Beijing retaliated with duties on American energy exports.
India has already lowered its average import tariff rate from 13% to 11% in its annual budget and reduced taxes on high-end motorcycles and luxury cars. The government is also reviewing surcharges on more than 30 items, including solar cells and additional luxury goods.
The meeting will focus on trade, defense, and technology but may be impacted by India’s recent deportations from the U.S.
One official noted that the meeting would provide strategic direction for bilateral ties, with more detailed trade negotiations expected to follow.
Despite previous criticism of India’s trade policies, Trump has praised Modi, calling him “fantastic.” The U.S. remains India’s largest trading partner, with bilateral trade surpassing $118 billion in 2023-24, resulting in a $32 billion surplus for India.
Over the past decade, economic ties between the two nations have strengthened. Washington increasingly views New Delhi as a strategic counterbalance to China’s growing influence in the region.
