India Considers Tariff Cuts to Boost Trade Ties Ahead of Modi-Trump Meeting: Report

DY365
DY365
Published: February 10,2025 11:10 AM
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India Considers Tariff Cuts to Boost Trade Ties Ahead of Modi-Trump Meeting: Report

February 10, 2025: In a strategic move to boost trade relations with the United States, India is reportedly planning additional tariff cuts ahead of Prime Minister Narendra Modi's scheduled visit to Washington on February 12-13. During this visit, PM Modi is set to meet U.S. President Donald Trump, with trade negotiations expected to be a key agenda item, according to a Reuters report citing government officials.



The proposed tariff concessions aim to encourage more American exports to India while preventing potential trade tensions. As per three unnamed government officials, the reductions are being considered across at least a dozen sectors, including electronics, surgical and medical equipment, and select chemicals.



India is particularly targeting tariff cuts on products it already imports significantly from the U.S., such as dish antennas and wood pulp, aligning these adjustments with its domestic production goals. These moves are seen as part of India’s broader strategy to strengthen economic ties with Washington.



One government official noted that the Modi-Trump discussions also aim to avoid a "trade war-like situation similar to that between the U.S. and China." President Trump, known for his tough stance on global trade, had previously imposed a 10% tariff on Chinese imports, leading to retaliatory duties on American energy exports by Beijing.



As of now, India’s trade ministry, the Ministry of External Affairs, and the Prime Minister’s Office have not issued any official statement regarding the reported tariff cuts. However, the discussions come at a crucial time when both nations seek to balance trade interests while strengthening diplomatic relations.



PM Modi's upcoming visit is expected to highlight trade cooperation, defense agreements, and investment opportunities between the two countries. The outcome of his meeting with President Trump will be closely watched for its potential impact on bilateral economic ties.