Prime Minister Narendra Modi plans to cut further tariffs ahead of his meeting with US President Donald Trump this week. Officials told Reuters that the move aims to prevent the possibility of a trade dispute while strengthening US exports to India.
Modi’s two-day visit to the US starting Wednesday is as Trump plans to introduce mutual tariffs, including a 25% obligation on steel and aluminum imports. “PM is expected to discuss tariffs between Trump and India,” an official familiar with the development said of anonymity.
Trade is expected to be the main point of the debate as India prepares to provide tariff cuts that will benefit American exports and help avoid the possibility of trade disputes, Reuters said He quoted the anonymous government official as saying.
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The move comes as Trump prepares to announce mutual tariffs targeting multiple countries to reshape the dynamics of global trade in favor of the US. Trump has not specified which countries will be affected, but he has previously criticised India for its trade policy and called the country “a very big abuser.” He also urged India to buy more American-made security equipment to establish a more balanced trade relationship.
According to officials, India is considering reducing tariffs across 12 sectors, including electronic devices, medical and surgical equipment and certain chemicals. These tariff cuts are consistent with India’s domestic production plan and could drive an increase in US exports. Additionally, concessions are being investigated for items sourced primarily from the US, such as dish antennas and wood pulp, Reuters reports.
The urgency of the visit comes from efforts to prevent a potential trade war between India and the United States, especially as tensions have risen between Washington and Beijing. The US recently imposed a 10% tariff on Chinese imports, urging China to retaliate with its American energy products obligations.
India has already taken steps to alleviate trade tensions, including reducing the average import tariff rate from 13% to 11% in its latest budget and reducing taxes on high-end motorcycles and luxury vehicles. Additionally, the government is considering additional fees for more than 30 products, including solar cells and luxury vehicles.
