PM Modi-Donald Trump meet: India mulls tariff cuts on a dozen sectors, says report

India is reportedly preparing additional tariff cuts as Prime Minister Narendra Modi is scheduled to meet US President Donald Trump this week. The tariff cuts could boost American exports to India and avoid a potential trade war. 

According to a report in Reuters, India is considering tariff cuts in at least a dozen sectors, including electronic, medical and surgical equipment, along with some chemicals to increase US imports. As per the report that quoted government officials, these reductions align with New Delhi’s domestic production plans. 

Concessions, as per the sources, are being planned on items that India primarily sources from the US or has potential to buy more, including dish antennas and wood pulp. 

The discussion on tariffs is expected during PM Modi’s trip to the US on Wednesday and Thursday. This comes as Trump reiterates his plans to announce reciprocal tariffs on many countries. He has not specified which countries would be hit but he had previously called India a “very big abuser” on trade. He had stressed that India should buy more US-made security equipment to move toward a fair bilateral tradition relationship. 

India wants to prevent a trade conflict similar to that between the US and China. Trump has imposed a 10% tariff on Chinese imports, leading to retaliatory duties by Beijing on American energy products.

India recently reduced its average import tariff rates from 13 per cent to 11 per cent on various items as part of Union Budget 2025. Additionally, taxes on high-end motorcycles and luxury cars have been lowered. The government is also reassessing surcharges on over 30 items, including luxury vehicles and solar cells.