ADVERTISEMENTs
.png)
India's Modi to meet Trump with planned tariff concessions
Modi's trip to the U.S. on Feb. 12 and Feb. 13 comes as Trump plans to announce reciprocal tariffs on many countries, a move aimed at reshaping global trade relationships in favor of the United States.
Indian Prime Minister Narendra Modi speaks to U.S. President Donald Trump during a meeting at Hyderabad House in New Delhi, India, February 25, 2020. REUTERS/Al Drago/File Photo / Reuters
Indian Prime Minister Narendra Modi is preparing additional tariff cuts ahead of his meeting with U.S. President Donald Trump that could boost American exports to India and avoid a potential trade war, government officials said.
Modi's trip to the U.S. on Feb. 12 and Feb. 13 comes as Trump plans to announce reciprocal tariffs on many countries, a move aimed at reshaping global trade relationships in favor of the United States.
Trump has not specified which countries would be hit but has previously called India a "very big abuser" on trade and stressed that India should buy more American-made security equipment to move toward a fair bilateral trading relationship.
India is considering tariff reductions in at least a dozen sectors, including electronic, medical, and surgical equipment, along with some chemicals, to raise U.S. exports. These reductions align with New Delhi's domestic production plans, three government officials said.
The officials, who spoke on condition of anonymity, said that concessions are being considered for items that India primarily sources from the U.S. or has the potential to buy more of, such as dish antennas and wood pulp. Modi is expected to discuss tariffs with Trump next week and India is open to discussing a possible mini trade deal.
The early visit hopes to avoid a "trade war-like situation that is happening between the U.S. and China," a third official said. Trump imposed sweeping 10 percent tariffs on Chinese imports, prompting Beijing to respond with duties on American energy.
The officials did not wish to be identified as they are not authorized to speak to the media. India's trade ministry, foreign affairs ministry, and the Prime Minister's Office did not respond to requests for comment e-mailed outside official work days.
The discussions on tariff concessions follow a reduction in India's average import tariff rates to 11 percent from 13 percent on several items in the country's annual budget and a cut in taxes on high-end bikes and luxury cars.
India is also reviewing surcharges levied on more than 30 items, including luxury cars and solar cells.
The upcoming meeting between Modi and Trump will focus on trade, defense cooperation, and technology, but has been overshadowed by the recent deportation of Indians from the U.S.
One of the three officials said the meeting will help offer political direction to ties between the two countries and detailed talks on tariffs will follow the trip.
Despite Trump's criticism of India's trade practices, the U.S. president has called Modi "fantastic".
The U.S. is India's largest trading partner and two-way trade surpassed $118 billion in 2023/24, with India posting a surplus of $32 billion.
Trade ties between the two nations have grown steadily over the last decade, with Washington increasingly viewing New Delhi as a counterbalance to China's growing regional influence.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
E Paper
ADVERTISEMENT
.jpg)
Video
-1.jpg)
.jpg)
Comments
Start the conversation
Become a member of New India Abroad to start commenting.
Sign Up Now
Already have an account? Login