3 weeks ago
57
February 10, 2025 | 02:05 pm
TEMPO.CO, Jakarta - Indian Prime Minister Narendra Modi is preparing additional tariff cuts ahead of his meeting with U.S. President Donald Trump that could boost American exports to India and avoid a potential trade war, government officials said.
Modi's trip to the U.S. on Wednesday and Thursday comes as Trump plans to announce reciprocal tariffs on many countries, a move aimed at reshaping global trade relationships in favour of the United States.
Trump has not specified which countries would be hit but has previously called India a "very big abuser" on trade and stressed that India should buy more American-made security equipment to move toward a fair bilateral trading relationship.
India is considering tariff reductions in at least a dozen sectors, including electronic, medical and surgical equipment, along with some chemicals, to raise U.S. exports. These reductions align with New Delhi's domestic production plans, three government officials said.
The officials, who spoke on condition of anonymity, said that concessions are being considered for items that India primarily sources from the U.S. or has potential to buy more of, such as dish antennas and wood pulp. Modi is expected to discuss tariffs with Trump next week and India is open to discussing a possible mini trade deal.
The early visit hopes to avoid a "trade war-like situation that is happening between U.S. and China," a third official said. Trump imposed sweeping 10% tariffs on Chinese imports, prompting Beijing to respond with duties on American energy.
The officials did not wish to be identified as they are not authorised to speak to media. India's trade ministry, foreign affairs ministry and the Prime Minister's Office did not respond to requests for comment e-mailed outside official work days.
The discussions on tariff concessions follow a reduction in India's average import tariff rates to 11% from 13% on several items in the country's annual budget, and a cut in taxes on high-end bikes and luxury cars.
India is also reviewing surcharges levied on more than 30 items, including luxury cars and solar cells.
The upcoming meeting between Modi and Trump will focus on trade, defense cooperation and technology, but has been overshadowed by the recent deportation of Indians from the U.S.
One of the three officials said the meeting will help offer political direction to ties between the two countries and detailed talks on tariffs will follow the trip.
Despite Trump's criticism of India's trade practices, the U.S. president has called Modi "fantastic".
The U.S. is India's largest trading partner and two-way trade surpassed $118 billion in 2023/24, with India posting a surplus of $32 billion.
Trade ties between the two nations have grown steadily over the last decade, with Washington increasingly viewing New Delhi as a counterbalance to China's growing regional influence.
REUTERS | Sarita Chaganti Singh, Shivangi Acharya and Shivam Patel
Editor's Choice: Saudi Official Mocks Trump's Gaza Plan: Relocate Israelis to Alaska and Greenland!
Click here to get the latest news updates from Tempo on Google News
Nearly Half of U.S. Citizens Reject Trump's Gaza Takeover Plan
2 jam lalu
Survey shows that 47 percent of American citizens consider U.S. President Donald Trump's plan to take over Gaza Strip as a 'bad idea'.
Indonesia Urges Citizens in U.S. to Follow Immigration Laws as Trump Tightens Restrictions
1 hari lalu
The Ministry of Foreign Affairs urges Indonesians in the U.S. to comply with immigration regulations, which have been tightened by Donald Trump.
U.S. Tariffs on China; Bank Indonesia Talks of Impact on Indonesia's Exports
1 hari lalu
High U.S. tariffs could affect strategic sectors that have long relied on the Chinese market.
Google Challenges Indonesian Court Ruling on Alleged Market Monopoly
1 hari lalu
Google believes that their current practices have a positive impact on the application ecosystem in Indonesia.
Six Million People Could Die from HIV and AIDS if US Funding Stops, UN Agency Warns
1 hari lalu
The United Nations AIDS agency responded to the impact of US President Donald Trump's administration pulling its global funding.
Coast Guard Finds Wreckage of Missing Alaska Plane; All 10 on Board Killed
2 hari lalu
The Cessna 208B Grand Caravan aircraft was reported missing en route from Unalakleet on Thursday, reported Alaska authorities.
79 Countries Express 'Unwavering' Support for ICC
2 hari lalu
Among the countries that support the ICC are France, Germany, and the UK, while Australia, the Czech Republic, Hungary, and Italy are absent.
Bank Indonesia Prepares for Potential Global Inflation Surge Due to Trump's Policies
2 hari lalu
Amid these global dynamics, Bank Indonesia affirms that Indonesia's external sector resilience is still relatively strong.
Trump Imposes Sanctions on International Criminal Court
2 hari lalu
President Donald Trump has authorized economic and travel sanctions targeting people who work on International Criminal Court investigations (ICC)
Trump to Meet Japan's Ishiba as China Trade War Simmers
2 hari lalu
President Donald Trump will meet Japanese PM Shigeru Ishiba as two allies wary of China's boosted business and security ties.
