New Delhi could offer the US reductions in import duties as the Indian leader travels to Washington
India hopes that a series of import duty cuts announced in its recent annual budget, along with additional reductions, will help soften the view of US President Donald Trump’s administration that the country is a “tariff abuser,” according to local media reports.
Indian Prime Minister Narendra Modi’s bilateral meeting with Trump this week will place tariffs high on the agenda, with New Delhi preparing detailed fact sheets on existing import duties on major US industrial goods exported to India, Indian media outlets reported.
Ahead of his visit to Washington, Modi expressed optimism and stated that the visit will provide an opportunity to build on past successes and create a roadmap for further collaboration, focusing on sectors like technology, trade, defense, energy, and supply chain resilience.
According to The Hindu, New Delhi may consider further reducing import duties on “items of US interest,” including pecan nuts, which are primarily grown in the southwestern United States. The Indian government hopes that concessions could help ease Trump’s stance on India being labeled a tariff abuser. Trump’s top economic adviser, Kevin Hassett, slammed India’s tariffs in an interview with CNBC on Monday, calling them “extremely high” and a “major barrier” to imports.
In the recent federal budget for the next financial year (beginning in April), the Indian government announced a slew of measures such as tariff cuts on luxury products and imported bikes such as Harley Davidsons, in an effort to signal that these rates were not as high as perceived. According to the Times of India, New Delhi has “prepared the ground” for Modi to point out to Trump that the government is “sensitive” to White House’s concerns.
Noting that average tariff on imports have come down over the years, officials quoted by the newspaper said that for the top 30 imports from the US, which includes oil, gas, diamonds, and airplanes, the levy is not more than 7.5%.
After being labelled a “major trade abuser” by Trump, who pushed for increased purchases of US-made defense equipment, India is now contemplating tariff cuts in multiple sectors, including electronics, medical devices, and chemicals, to bolster US exports and support its own domestic manufacturing ambitions, Reuters reported, quoting three government officials.
Prior to Modi’s visit, Trump is expected to unveil fresh tariffs of 25% on steel and aluminum imports, along with retaliatory tariffs on other products, which are slated to come into effect soon. On Friday, Indian Foreign Secretary Vikram Misri stated that New Delhi expects “a more intense and continuing discussion on tariffs,” acknowledging Trump’s call for a more “balanced trade relationship,” with India being a significant player in global trade. Another government official told CNBC TV18 that most US imports to India already face low tariffs, with 6,000 out of 8,400 tariff lines below 100%.
According to government data, trade between India and US exceeded $118 billion in fiscal 2023-2024, with the South Asian nation posting a surplus of $32 billion.
