India plans tariff cuts ahead of Modi-Trump meet to boost US trade, avoid conflict

India is preparing to lower tariffs on multiple imported goods ahead of Prime Minister Narendra Modi’s visit to the United States on February 12-13, where he will meet President Donald Trump. The proposed tariff cuts are aimed at increasing American exports to India and addressing ongoing trade issues between the two countries.

Government officials have indicated that tariff reductions are under consideration in at least a dozen sectors, including electronics, medical and surgical equipment, and chemicals. Items such as dish antennas and wood pulp, which India primarily imports from the US, are also being evaluated for duty reductions. These changes align with India’s broader trade and manufacturing policies.

India’s recent Union Budget 2025 included a reduction in the average import tariff rate from 13% to 11%. Additionally, taxes on luxury cars and high-end motorcycles were lowered. The government is reviewing surcharges on more than 30 items, including solar cells and high-end vehicles, as part of its ongoing trade policy adjustments.

The United States has expressed concerns about India’s trade practices and market access policies. President Trump has called for increased Indian imports of US-made security and defense equipment. His administration has previously imposed a 10% tariff on a range of Chinese imports, leading to retaliatory tariffs from China on American energy products. India is seeking to avoid a similar trade dispute.

In 2023-24, trade between India and the United States reached over $118 billion, with India maintaining a trade surplus of $32 billion. The US remains India’s largest trading partner, with both nations engaging in trade across sectors including defense, technology, pharmaceuticals, and services. India has been reviewing trade policies to address concerns from key partners while aligning them with domestic economic priorities.

The upcoming Modi-Trump meeting will focus on trade, defense cooperation, and technology partnerships. While tariff discussions are expected, more detailed negotiations on trade-related issues will likely continue after the visit. No official statement has been released by India’s trade ministry, foreign affairs ministry, or the Prime Minister’s Office regarding specific tariff reductions.