U.S. President Donald Trump and Indian Prime Minister Narendra Modi, seen here in 2020, will meet in Washington Wednesday as India seeks to avoid U.S. tariffs. File Photo by Raj Patel/UPI |
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Feb. 12 (UPI) -- Avoiding American tariffs on Indian goods coming into the United States will be a key focus of Indian Prime Minister Narendra Modi as he arrives in Washington on Wednesday ahead of a meeting with President Donald Trump.
As he left New Delhi, Modi said he hoped to build on the friendly relationship the two populist leaders enjoyed in Trump's first 2017-2021 term but he came, nevertheless, prepared to find ways to address a jarring $45.7 billion trade deficit by buying more American energy, including nuclear, and U.S. defense equipment.
Modi will also dangle the prospect of cutting tariffs on American products from whisky and pecans to electronics, medical equipment and chemicals and stress last week's cuts in duties on Harley Davidson motorcycles to ease Trump's concerns over barriers to entry to the Indian market from the high overall duties it imposes on imported goods.
India has signaled a willingness to talk about a mini-trade agreement with the United States to deal with market access concerns.
With India the second largest source of illegal migrants entering the United States after Latin America, the issue will also be high on the agenda but Modi has also already laid groundwork, showing a willingness to go along with deportations of his citizens even as he was forced to defend the returns amid public fury in India.
The arrival in Amritsar on Thursday of a U.S. military aircraft carrying 104 Indians who were in the country illegally disrupted business in India's parliament as opposition MPs protested against alleged mistreatment of the migrants who were reportedly shackled hand and foot.
However, in return Modi will hope to be able to persuade Trump to grow the United States' H-1B skilled worker visa program, which sees large numbers of Indians enter the country to work in Silicon Valley and the tech sector.
India has so far avoided the tariffs imposed, actual or impending, on China, Canada, and Mexico, although as the world's second-largest steel producer after China it will take a hit from the 25% duty on steel imports announced by Trump on Monday.
The Indian Steel Association said Tuesday that it expected the new tariff to cut exports to the United States by 85%. However, just 95,000 tons, or 0.07%, of India's 145 million tons annual production is sent to the United States.
Indian Foreign Secretary Vikram Misri said Modi's invitation to the United States "within barely three weeks of the new administration taking office, shows the importance of the India-U.S. partnership."
