India's Modi to meet Trump with planned tariff reductions
Indian Prime Minister Narendra Modi is preparing additional tariff reductions ahead of his upcoming meeting with US President Donald Trump, aiming to enhance American exports to India and prevent a potential trade dispute, according to government officials.
Trump’s chief economic adviser, Kevin Hassett, remarked on Monday that India’s high tariffs restrict imports, and Modi would have significant trade discussions with Trump during their meeting.
In addition to reducing tariffs, Modi is expected to propose increased energy and defense imports during his two-day visit to the United States, beginning Wednesday.
On Sunday, Trump announced plans to impose new 25% tariffs on all steel and aluminum imports into the US. These duties, in addition to existing metal tariffs, would take effect immediately, with reciprocal tariffs expected to be announced early in the week.
Trump has previously criticized India’s trade policies, calling the country a “very big abuser” in global trade. Hassett emphasized that the US intends to impose reciprocal tariffs equivalent to those levied by other countries, stating, “If they go down, we’ll go down.”
India is considering tariff reductions in at least a dozen sectors, including electronics, medical and surgical equipment, and chemicals, to align with its domestic production initiatives and bolster US exports, government sources revealed.
Discussions between India and the US also include the potential purchase and co-production of combat vehicles and finalization of a fighter jet engine deal. Last month, Trump urged Modi in a phone call to increase purchases of US-made defense equipment and work towards a fair trade balance.
Modi expressed optimism about the visit, stating, “This visit will be an opportunity to build upon the successes of our collaboration during his (Trump’s) first term.”
He highlighted technology, trade, defense, energy, and supply chain resilience as key areas for strengthening the bilateral partnership.
Over the past decade, trade relations between India and the US have steadily grown, with Washington increasingly considering New Delhi a strategic counterweight to China’s regional influence.
Bilateral trade exceeded $118 billion in the 2023-2024 fiscal year, with India maintaining a surplus of $32 billion.
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