Prime Minister Narendra Modi is going to meet U.S President Donald Trump tomorrow,  February 13, marking one of the first high-profile diplomatic visits to Washington since Trump began his 2nd term this January 20. With trade relations between India and U.S. facing many challenges, Modi’s visit is seen as a big move to prevent high tensions.

Strengthening Ties Amid Trade Concerns

India has already taken steps to ease trade tariff with United States by cutting some tariffs, a move aimed at keeping up amicable economic ties. Reports indicate,t Modi is offering trade concessions to reduce any adverse reactions from the Trump administration.

For years, successive U.S presidents have worked to deepen engagement with India, especially in light of China’s growing influence. This makes India a key ally for Washington, not just in strategic affairs but also in trade and economic cooperation.

A Relationship Marked by Trade Ups and Downs

Bilateral trade between India and US reached over USD118 billion in 2023-24, with India maintaining a surplus of USD32 billion. However, the trade relationship has often been rocky. Trump, known for his protectionist stance, has frequently criticized India for imposing high tariffs on American goods.

In 2019, Trump revoked India’s preferential trade status under the Generalised System of Preferences (GSP), citing unfair market access for U.S products. He also raised tariffs on Indian steel and aluminium imports. On February 10, Trump announced a new 25 percent tariff on steel and aluminium imports, a step that could significantly impact Indian manufacturers.

India’s Pre-emptive Measures to Ease Tensions

To defuse potential trade disputes, Finance Minister Nirmala Sitharaman recently announced reductions in import duties on select products, including luxury motorcycles and electric batteries. This decision, taken just ahead of Modi’s US visit, is considered as an effort to address Trump’s long-standing grievances about US companies like Harley-Davidson struggling in India.

Experts suggest Modi’s approach is designed to prevent the US from introducing stricter trade restrictions. Former US security official Lisa Curtis has highlighted India’s proactive efforts in laying the foundation for productive discussions.

More Tariff Reductions Likely

Ahead of the crucial meeting, India is reportedly considering additional tariff cuts across various sectors, including electronics, medical equipment, and chemicals. The goal is to create a more favorable trade environment and avoid escalating tensions that could lead to a full-blown trade war.

Kevin Hassett, Trump’s economic advisor, has earlier said that India’s high tariffs hinder imports and need to be addressed. He also hinted that reciprocal tariff reductions from the US could follow if India takes significant steps in this direction.

Defence & Energy Deals in Focus

Apart from trade, Modi’s visit is expected to center on boosting defence and energy partnerships between the two nations. India is actively negotiating deals on advanced fighter jet engines and combat vehicle production with the US. Increased energy imports from American firms are also on the agenda. Officials believe these agreements will play a crucial role in ensuring stable bilateral ties and preventing economic disputes.

Deportation Controversy Looms Large

The meeting is taking place against the backdrop of a heated controversy over the US deporting 104 Indian illegal immigrants in shackles on a military plane. The images caught widespread outrage in India, with the opposition criticizing Modi for not taking a tougher stand against Trump’s immigration policies. Reports suggest that nearly 7,25,000 Indians are staying illegally in the United states, with as many as 20,000 identified for deportation.

A Critical Diplomatic Engagement

Modi’s US visit marks major weight in shaping the future of India-US trade relations. By making strategic tariff cuts and finalising key agreements, India aims to develop its partnership with Washington, while making clear of any trade restrictions that may hurt its economic growth.

PM Mody's high-profile meeting will be streamed live on his official platforms YouTube,  X and also in the channels of the Ministry of External Affairs, as well White House’s official portals, plus covering global news networks.