The planned tariff reductions are expected to cover sectors ranging from electronics and medical equipment to chemicals. 

Key Takeaways:

• India is preparing to announce tariff reductions on US imports ahead of Modi’s US visit.
• The tariff cuts will affect at least a dozen sectors.
• India is open to discussing a "mini trade deal" during the visit. 
• Modi's visit is to prevent a trade war similar to the one between the US and China.

Ahead of Indian Prime Minister Narendra Modi's two-day visit to the United States from February 12-13, India is reportedly preparing to announce tariff cuts in a bid to foster stronger trade relations with the U.S. and avoid a potential trade war.

The cuts target at least a dozen sectors in which India typically imports from the United States, such as dish antennas and wood pulp. These reductions are expected to align with India’s broader domestic production goals while simultaneously addressing the U.S.’s concerns over trade imbalances and high tariffs that have locked out many imports. 

This strategy is seen as an effort by India to build a fairer trade relationship with the U.S. and avert the type of trade war currently ongoing between the United States and China. In addition to tariff cuts, India is also open to discussing a "mini trade deal" with the U.S. during Modi's visit. These talks are expected to focus on specific areas where both countries can find common ground, particularly in trade sectors where both have mutual interests.

The U.S. President has been vocal in his criticisms of India's trade practices in the past, referring to India as a "very big abuser" of global trade. Trump’s administration has taken a hard stance on global tariffs, recently imposing a 10% tariff on Chinese imports, a move that Beijing retaliated against by targeting U.S. energy products.

India's trade relationship with the United States has grown significantly in recent years, with bilateral trade exceeding $118 billion in the 2023-2024 fiscal year. However, India has faced pressure from the U.S. to increase its purchases of U.S.-made security equipment, a move that Trump has repeatedly stressed as essential for a balanced trade relationship. Talks are already underway regarding the potential co-production of combat vehicles and the finalization of a fighter jet engine deal.

One of the key goals of Modi’s visit is to prevent a scenario similar to the trade war between the U.S. and China, which has had a destabilizing impact on global markets.