India and the US will be holding discussions on tariffs after the recent Budget announcements on rationalisation of import duties when Prime Minister Narendra Modi meets President Donald Trump next week, a senior official said on Friday.
Reviving trade negotiations and investment issues will be the priority areas in the discussion between the two leaders, foreign secretary Vikram Misri said in a media briefing on the PM’s visit to US and France.
Modi will be in the US for a two-day working visit, starting February 12, on the invitation of Trump where energy and defence matters will also be on the table.
In the first Trump presidency, India and the US had initiated discussions on a limited trade deal but then efforts were given up after the change of administration.
The Budget last week had rationalised the import tariff structure in India, doing away with the rates of over 70%. This adjustment is likely to blunt Trump’s criticism of India who has called India “tariff champion” and “abuser of tariffs”.
The adjustments in tariff structure has resulted in reduction of import taxes on some of the most prominent items that pop up between India and US negotiations like high-capacity motorcycles. Trump has pointed to high duties India imposes on Harley Davidson motorcycles manufactured in the US. India has reduced tariffs on motorcycles based on engine capacity in the Budget for 2025-26.
While there has been indication of direct tariff action on India by the US so far, President Trump has gone ahead and imposed 10% tariffs on China. He also announced a 25% tariff on Mexico and Canada but then kept it in abeyance to give space to negotiations. Trump has also indicated that tariffs on the European Union are also coming soon.
Officials in finance ministry have also indicated more tariff cuts and reduction in additional duties if it does not adversely impact local industry.
Misri said relations between India and the US have been one of the strongest international relationships in recent years and the Prime Minister’s visit is in line with our steady engagement with the new administration.
“There is a close rapport between the PM and US President Trump going back to the first term of Trump.
“There is a convergence of interest between the two countries in the area of trade, investment, technology, defence, counter-terrorism, security of Indo-Pacific and people-to-people contact,” Misri said.
Modi and Trump will hold private discussions and then delegation-level talks. Senior administration figures are also expected to call on PM Modi. The PM will also meet business leaders and members of the Indian community.
On the recent outrage over the way US deported Indians staying illegally in their country, Misri said, “This kind of treatment perhaps can be avoided. This is the conversation we are having with the US.”
On Wednesday, a military aircraft brought 104 Indian nationals staying illegally in the US back home. Misri said there are 487 presumed Indian citizens with final removal orders and their details have been sought from the US. Of the 487 persons, the US has provided details of 298 persons.
The foreign secretary said, “Any country that is able to provide us information which we are then able to verify that these are our nationals we will take them back. It is not limited to the US.”
Modi’s US visit tour will be preceded by his two-day visit to France from February 10. In France, he will be co-chairing the Artificial Intelligence Action Summit with French President Emmanuel Macron.
Both leaders will also hold restricted and delegation level talks. Modi will also address India-France CEO Forum and inaugurate Indian consulate in Marseille.
With both France and the US, India would be seeking to speed up discussions in the coming months on small modular reactors. The Budget has announced a Nuclear Energy Mission for research and development of these aspects.