PM Modi's US visit: Tariff cuts, defence deals likely to feature in high-stakes meeting with Donald Trump

Prime Minister Narendra Modi will meet US President Donald Trump in Washington on Wednesday amid reports of potential tariff cuts by India to avert a trade war with the new administration. The high-stakes visit comes amid growing concerns over escalating trade tensions following the Trump administration's recent tariff hikes.

In his departure statement on Monday, Prime Minister Modi expressed enthusiasm about meeting "my friend, President Trump," recalling their "very warm" collaboration during Trump’s first term.

Modi said his visit would be an opportunity to build upon the successes of the collaboration during Trump’s first term. He also asserted that it would help “develop an agenda to further elevate and deepen our partnership, including in the areas of technology, trade, defence, energy, and supply chain resilience.”

Modi's visit comes amid President Trump’s decision to substantially raise tariffs on steel and aluminium imports to a flat 25%, eliminating previous exemptions and exclusions. The new measures, effective March 4, have heightened fears of a multi-front trade war.

Indian officials and industry groups are pinning their hopes on Modi’s US visit, the first since the inauguration of the second presidential term of President Donald Trump, to enhance strategic and economic ties with the United States.

Key issues likely to be discussed:

• Last week, foreign secretary Vikram Mistri said that PM Modi will hold bilateral meetings with Trump in both the restricted and delegation-level formats. Highlighting the significance of the prime minister’s visit within a month of Trump’s inauguration, Mistri said it would be a valuable opportunity to engage the new administration in all areas of mutual interest.

• He said the two sides would discuss trade, investment, technology, defence cooperation, counterterrorism, Indo-Pacific and, people-to-people relations.

• According to Reuters, Modi is expected to propose tariff reductions and increased energy and defence imports to address trade imbalances.

• As the world's fourth-largest importer of liquefied natural gas (LNG), India may also push for expanded LNG purchases from the US, leveraging the Trump administration’s recent lifting of export permit bans for new projects, the report claimed.

• Defence collaboration will feature prominently in Modi’s discussions with Trump. India is likely to negotiate the purchase and co-production of combat vehicles, including ongoing talks with General Dynamics on Stryker combat vehicles.

• Immigration issues are also set to feature in the talks following the deportation of 104 undocumented Indian immigrants and concerns over their alleged mistreatment by the US last week.

• Tech industry ties could see a boost with Tesla CEO Elon Musk expected to meet Modi to discuss the company’s entry into the Indian market and the expansion of Starlink's satellite services.

• India will likely propose facilitating investments by Indian firms in the US, particularly in steel, garments, and contract manufacturing.