Highlights:
- PM Narendra Modi arrives in Washington DC for a two-day visit, aiming to secure a trade deal with US President Donald Trump.
- India has so far escaped Trump’s tariffs, unlike China, Mexico, and Canada.
- Trump calls India the ‘tariff king’ and is expected to push for lower Indian import duties on US goods.
- India is considering reducing tariffs on over 30 items and increasing purchases of US defence and energy products.
- Trade deal negotiations likely to be modeled after the US-Japan agreement, offering select tariff concessions and broader investment agreements.
India Navigates Trade Talks Amid Trump’s Tariff Crackdown
With US President Donald Trump’s aggressive tariff policies rattling global trade, Prime Minister Narendra Modi’s visit to Washington DC marks a crucial diplomatic moment. The fact that India has so far escaped US tariffs underscores the strategic importance of US-India relations and the Modi-Trump equation.
Despite India being a key strategic partner, Trump has frequently criticized India’s high import duties, branding the country as a “tariff king.” As Modi meets Trump within a month of his presidency, all eyes are on whether India can strike a trade deal that shields it from future tariffs.
India’s Trade Concessions to Woo Trump
Ahead of the visit, India has made several trade concessions, including:
✅ Lowering tariffs on US motorcycles and luxury cars
✅ Expanding purchases of US defence and energy products
✅ Considering tariff reductions on over 30 US goodsLisa Curtis, former National Security Council director on South Asia, noted that India has already taken positive steps to create a favorable negotiation environment.
According to a Nomura report, India is also exploring ways to prevent higher reciprocal tariffs from the US by offering further trade adjustments.
Trump’s Hard Bargain: What’s at Stake?
While India has avoided Trump’s “tariffs first, talks later” approach, negotiations will be tough. Trump is expected to demand:
📌 Lower import duties on US goods
📌 Greater market access for American companies
📌 Higher Indian purchases of US productsOn the other hand, India seeks a limited trade deal, similar to the US-Japan trade agreement, ensuring:
🔹 Tariff relief for certain goods
🔹 Stronger investment agreements
🔹 Protection from sudden tariff hikesWhat Lies Ahead?
The Modi-Trump trade talks could set the tone for future US-India economic relations. While India is making efforts to placate Trump’s trade concerns, a final deal remains uncertain.
If successful, the trade pact could strengthen India’s global trade position and bolster investor confidence, keeping India-US relations on a strong footing despite growing protectionism.
