The Indian government, led by Prime Minister Narendra Modi, is considering further reductions in tariffs on US imports to avoid a "trade war-like" situation with the United States, Reuters reported, citing government sources.
India is preparing to introduce additional tariff concessions ahead of Modi's upcoming visit to Washington on February 12-13 and his meeting with US President Donald Trump. “The tariff reduction is planned in at least 12 sectors and will affect export supplies of US electronic and medical equipment, as well as some petrochemical products. In this way, New Delhi seeks to stimulate the growth of American exports to India to avoid a potential trade war with Washington, which the United States is already waging with China,“ said one of the sources in Indian government circles.
The United States is India's main trading partner. In the fiscal year 2023-2024, trade between the countries amounted to 118 billion USD. The trade balance is in favor of India with a surplus of 32 billion USD. India's budget for the fiscal year 2025-2026, starting from April 1, provides for a reduction in tariffs on a number of imported goods from electronics to textiles, which is the first serious step in this direction by the country's government in recent years. The reduction in tariffs, in particular, affected motorcycles manufactured by the American company Harley Davidson, which Trump constantly insisted on during his first presidential term.