Modi Mulls Lower Tariffs, More Imports To Counter Trump's Threats
Date
1/22/2025 3:15:14 AM
(MENAFN- Live Mint) India's government is evaluating options ranging from a trade deal, cutting tariffs and importing more goods from the US if US President Donald trump follows through with threatened trade action.
Officials in the Narendra Modi-led administration have sketched out various scenarios to counter any steps a new Trump administration may take to narrow India's trade surplus with the US which was $35.3 billion for the year ended March 31, people familiar with the matter said. US was India's largest trading partner for the period, data from India's commerce Ministry show.
Among the options discussed, the government could buy more whiskey, steel and oil from the US, the people said, asking not to be identified as the talks are private. It could also reduce some import tariffs, with officials drawing up a list of likely products, such as bourbon whiskey and farm goods like pecan nuts, they said.
One of the proposals being considered is to reduce duties on good imported from US states that are politically important for the Republican party, one of the people said.
The plans under discussion are part of India's larger strategy to avoid any confrontation with Trump, and also benefit from any potential US-China trade war, the people said. Bloomberg News reported Tuesday that New Delhi is set to take back at least 18,000 illegal Indian immigrants from the US to help placate the Trump administration.
An email seeking comments from the trade ministry spokesperson was not immediately answered. The plans have not been finalized and are still under discussions, the people said.
On his first day in office Monday, Trump said he would slap a 25% tariff on Mexico and Canada by Feb. 1 while holding off on unveiling China-specific tariffs. He also threatened countries in the BRICS group of developing countries with increased tariffs.
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