CNN
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The US trade policy is under the microscope after President Donald Trump has enacted or after he says he plans to enact it – there are tariffs on the country’s three biggest trading partners, We’ve teased the broader tariffs in the coming days. CNN will look into trade ties between the two countries as India’s prime minister Narendra Modi was expected at the White House later this week.
India has so far been spared tariffs from the new Trump administration, but Trump recently said that mutual tariffs will be announced in countries with tariffs on US goods, including India. Meanwhile, India could increase litigation to avoid such tariffs, as the country has recently considered trade policies in a move that is thought to entice additional trade with the US, according to several Reuters reports. there is.
Here’s what you need to know about US-India trade:
Where things stand
The US is India’s largest trading partner as of 2024, but India ranked 10th in the same year on the list of US trading partners. Bilateral trade between the United States and the world’s most populous country was $1292 billion in 2024, a record for partnerships.
Trump plans to impose 25% tariffs on two top US trading partners, Mexico and Canada, with 10% tariffs already in effect on Chinese products, experts say India They say that by exporting more technology, electronics and gems, they can benefit from these tense trade relations to America.
“The US and India both want to increase their economic influence in the Indo-Pacific region and blunt China’s economic advantage. Kenneth I. Juster, former US ambassador to India from 2017 to 2021. Kenneth I. Juster, former US trade aide Mark Lin Scott, wrote: In a foreign policy article on January 21, South and Central Asia from 2016 to 2018. problem.
The US-India trade deficit is growing, with the US importing $45.7 billion more from India than it was exported in 2024, with US imports from India about 2.7% of all imports last year. This accounted for %.
Trump was speaking out about his preference for Modi’s own tariffs, but there were indications that Southeast Asian countries were being cooled down by taxation. Earlier this month, the Indian Finance Minister significantly reduced import duties on motorcycles.
What’s coming in and what’s going out
The US counts pearls, semi-precious stones, medicines and electrical equipment among the best imports from India. In 2023, imports of the top five products from India to the US totaled over $47 billion.
Modi is scheduled to visit Washington this Wednesday and Thursday, February 12th to 13th.
The two leaders spoke on the phone on January 27th, seven days after Trump’s inauguration. There, they discussed the importance of expanding cooperation, security in the Indo-Pacific and the purchase of more US security equipment for India.
