New Delhi, India – Indian Prime Minister Narendra Modi is preparing additional tariff cuts ahead of his meeting with U.S. President Donald Trump, a move aimed at increasing American exports to India and averting a potential trade war, government officials said.
Modi’s visit to the U.S. on Wednesday and Thursday comes as Trump considers imposing reciprocal tariffs on multiple countries, part of his broader strategy to reshape global trade in favor of the United States. While Trump has not specified which nations will be affected, he has previously criticized India as a “very big abuser” on trade and urged New Delhi to purchase more American-made security equipment to establish a more balanced trade relationship.
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India is weighing tariff reductions in at least a dozen sectors, including electronics, medical and surgical equipment, and select chemicals, in an effort to boost U.S. exports. These reductions align with India’s domestic production plans, three government officials said. The officials, speaking on condition of anonymity, noted that concessions are being considered on items that India primarily sources from the U.S. or has the potential to increase imports of, such as dish antennas and wood pulp. Modi is expected to discuss these tariff adjustments with Trump next week, with India remaining open to negotiating a possible mini trade deal.
An early agreement aims to prevent a “trade war-like situation similar to what is happening between the U.S. and China,” one official said. Trump recently imposed a sweeping 10% tariff on Chinese imports, prompting Beijing to retaliate with duties on American energy products. The Indian officials declined to be named, as they are not authorized to speak publicly on the matter. India’s trade ministry, foreign affairs ministry, and the Prime Minister’s Office did not respond to requests for comment sent outside official working hours.
The talks on tariff concessions follow India’s recent decision to lower average import tariffs from 13% to 11% on several items in its annual budget, alongside tax cuts on high-end motorcycles and luxury cars. Additionally, India is reviewing surcharges on more than 30 imported goods, including luxury vehicles and solar cells.
The Modi-Trump meeting is expected to focus on trade, defense cooperation, and technology. However, discussions have been overshadowed by the recent deportation of Indian nationals from the U.S.
One official indicated that the meeting will provide political direction for bilateral ties, while detailed discussions on tariffs will continue post-visit. Despite Trump’s criticism of India’s trade policies, he has previously called Modi “fantastic.”
The U.S. is India’s largest trading partner, with two-way trade exceeding $118 billion in the 2023-24 fiscal year, during which India posted a $32 billion surplus. Trade relations between the two nations have steadily strengthened over the past decade, as Washington increasingly sees New Delhi as a strategic counterbalance to China’s growing regional influence.
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