Ahead of Prime Minister Narendra Modi’s two-day visit to the United States on February 12-13 where he will meet President Donald Trump, India is preparing additional tariff cuts in order to encourage more American exports to India and avoid a potential trade war, reported news agency Reuters citing some government officials.
Tariffs concessions are being considered in at least a dozen sectors, such as electronic, surgical and medical equipment and some chemicals, three government officials told Reuters on condition of anonymity.
The concessions are being planned on items for which India typically depends on US exports and could potentially source more from the US. Such items include dish antennas and wood pulp, the report said. These tariff concessions are also in resonance with India’s domestic production plans, the three unnamed officials said.
According to one of the officials, the meeting between PM Modi and Donald Trump also aims to avoid a “trade war-like situation that is happening between US and China." Keeping true to his hard stance on reforming global trade, Trump imposed 10% tariffs on China, to which the latter responded by imposing duties on US energy.
There has been no official confirmation on these claims of India’s supposed consideration of tariff cuts by the trade ministry, foreign affairs ministry and the Prime Minister's Office.
PM Modi-Trump Meet
{{/usCountry}}There has been no official confirmation on these claims of India’s supposed consideration of tariff cuts by the trade ministry, foreign affairs ministry and the Prime Minister's Office.
PM Modi-Trump Meet
{{/usCountry}}The meeting between Modi and Trump comes at a crucial time as the US President plans to impose reciprocal tariffs on many countries in order to reform global trade.
While the meeting between Modi and Trump will largely focus on trade, defense cooperation and technology, the potential detailed talks on tariffs will be held later, said the report.
India has previously been called a “very big abuser” of trade by Trump who stressed that in order for India and US to have a fair trade relationship, it was imperative for India to buy more US-made security equipment.
However, Trump, on many occasions has praised Modi despite his harsh stance on Indian trade practices, a silver lining that puts India in a bright spot to strike a favorable trade deal with the US. The two countries are crucial trading partners with their two-way trade surpassing a whopping $118 billion in 2023-24, the report said.