Trump's Tariff Tango: The U.S.-India Trade Dance

India faces pressure from the U.S. to lower high import tariffs, as President Trump prepares to introduce new tariffs on steel and aluminum imports. As Prime Minister Modi plans to cut tariffs in various sectors, India aims to boost U.S. exports, balancing trade relations and addressing imbalances.

India's high tariffs stand as a significant barrier to imports, according to U.S. President Donald Trump's top economic adviser, Kevin Hassett. With a meeting imminent between Trump and Indian Prime Minister Narendra Modi, discussions promise to revolve around the U.S. imposing reciprocal tariffs that match those of its trading partners.

Reportedly, Modi is planning additional tariff cuts as he gears up for a visit to Washington. This move is seen as an effort to boost U.S. exports across sectors like electronics, medical equipment, and chemicals, aligning with India's domestic production goals. Significantly, energy imports from the U.S., valued at over $11 billion in 2024, are on the cards as a means to ease trade imbalances.

India, a major importer of liquefied natural gas (LNG), intends to increase its procurement from U.S. providers, encouraged by the Trump administration's relaxed export permit regulations. Meanwhile, Trump advocates for halting tariff waivers to maintain adequate U.S. steel production amidst geopolitical uncertainties, showcasing his firm stance on reciprocal trade policies.

(With inputs from agencies.)