NEW DELHI: Indian Prime Minister Narendra Modi is preparing additional tariff cuts ahead of his meeting with US President Donald Trump that could boost American exports to India and avoid a potential trade war, government officials said.
Modi’s trip to the US on Wednesday (Feb 12) and Thursday comes as Trump plans to announce reciprocal tariffs on many countries, a move aimed at reshaping global trade relationships in favour of the United States.
Trump has not specified which countries would be hit but has previously called India a “very big abuser” of 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 US 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 US 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 US and China”, a third official said. Trump imposed sweeping 10 per cent tariffs on Chinese imports, prompting Beijing to respond with duties on American energy.
Source: CNA
