Modi Brings Tariff Concessions and Strategic Offers to Trump Amid Trade Tensions

Indian Prime Minister Narendra Modi is preparing for an important meeting with U.S. President Donald Trump, where he hopes to secure favorable trade terms and strengthen bilateral ties. Modi is offering concessions, including tariff reductions on multiple sectors such as electronics, medical equipment, and chemicals, aimed at easing tensions over India’s trade practices. India is also promising increased purchases of liquefied natural gas, combat vehicles, and jet engines from the U.S., alongside investment in nuclear energy. These moves are seen as a gesture to win Trump’s favor, particularly as both countries seek to address mutual concerns.

Trade has been a contentious issue between the two nations, with Trump criticizing India for its tariffs and trade practices during his first term. Despite a warm relationship with Modi, Trump has referred to India as a “very big abuser” of trade rules. The U.S. currently has a substantial trade deficit with India, which stands at $45.6 billion. However, Trump has emphasized his goal of achieving reciprocal tariff policies, which he hopes will bring about fairer trade agreements.

Aside from trade, Modi aims to garner U.S. support on issues closer to home, particularly the legal troubles of Indian billionaire Gautam Adani, who faces bribery charges in the U.S. The meeting will also touch on sensitive matters, including an alleged Indian intelligence plot to assassinate a Sikh activist in the U.S. The tariff discussion will likely dominate the talks, but both sides are also expected to explore cooperation in areas such as defense and nuclear energy.

While the tariff issue is critical, Trump’s administration has other priorities, notably seeking more cooperation from India on unauthorized immigration. India is a significant source of tech workers in the U.S., many of whom are employed on work visas. Trump is also eager for India’s assistance in his broader geopolitical strategy, particularly in countering China, which both nations view as a growing global rival. Modi’s government is wary of being sidelined in any potential U.S.-China deal and has expressed concerns about China’s military buildup.

The diplomatic landscape is further complicated by India’s ongoing ties with Russia, especially in energy consumption, despite the West’s efforts to distance itself from Moscow over the war in Ukraine. With Modi’s scheduled meeting with Elon Musk, there is also speculation about discussions related to the U.S. tech sector, which may hold strategic implications. The outcome of these talks could reveal the extent to which India is willing to align with U.S. objectives on global and regional matters, balancing its interests amid shifting alliances and pressures.

SOURCE: Reuters