India's Modi brings a tariff 'gift' to Trump talks
Indian Prime Minister Narendra Modi offers trade concessions Ahead of talks with US President Donald Trump.
Since the beginning of his presidency, Trump has used tariffs as a bargaining tool, pressuring both allies and adversaries to secure better trade agreements, attract investments, or gain support on law enforcement matters.
India is not exempt from this approach. While Trump and Modi shared a positive rapport during his first term, Trump has previously criticized India's trade policies, referring to the country as a "very big abuser" in trade matters. His administration’s tariffs on steel and aluminum significantly impacted Indian exports.
To set a positive tone for their discussions, Modi has prepared several economic incentives. According to Indian government officials, India plans to increase its imports of liquefied natural gas, combat vehicles, and jet engines from the US Additionally, trade talks may include expanded US agricultural exports to India and investments in nuclear energy. India is also considering tariff reductions in multiple sectors, such as electronics, medical and surgical equipment, and chemicals—areas where U.S. officials have sought improvements.
A source familiar with the discussions described these concessions as a "gift" to Trump, reflecting India's intent to smooth trade relations.
In return, Modi is expected to seek US assistance in resolving the legal troubles of Indian billionaire Gautam Adani, a close associate of his, who was indicted by the US Justice Department in November over an alleged bribery case. Adani has denied any wrongdoing.
The US currently maintains a $45.6 billion trade deficit with India. According to World Trade Organization data, the US trade-weighted average tariff rate stands at around 2.2%, whereas India's rate is significantly higher at 12%.
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