Trade tariffs to Musk: What's on agenda for Modi-Trump meet next week

Meetings with Elon Musk and other US business executives have also been proposed, although nothing has been confirmed yet

Prime Minister Narendra Modi is prepared to discuss reducing import tariffs and buying more energy and defense equipment from the US when he meets with President Donald Trump next week, according to Indian officials familiar with the matter.

Modi is scheduled to arrive in Washington on February 12 and likely to meet with Trump on February 13. Meetings with Elon Musk and other US business executives have also been proposed, although nothing has been confirmed yet, the people said, asking not to be identified because the discussions are private.

Foreign Secretary Vikram Misri told reporters Friday that New Delhi expects “a more intense and continuing discussion on tariffs” when the two leaders meet. India will also seek US investment in nuclear energy projects, he said, after the government recently eased rules to make it easier for businesses to invest.

Officials who asked not to be identified said New Delhi is prepared to negotiate phasing out some tariffs imposed on US goods in 2019 in retaliation to Trump’s trade action during his first term. India’s government had removed some eight items from the list of retaliatory duties, but 20 items still incur higher levies.

India is also willing to discuss a limited trade deal with the US to address concerns over market access, the officials said, after unsuccessfully attempting a similar deal during the first Trump administration.

Ministry of External Affairs and Ministry of Commerce and Industry didn’t immediately respond to emails requesting further information.

Modi’s government has already taken several steps central to Trump’s core agenda to appease the US leader since he’s taken office. India made significant cuts to import tariffs in its budget last week, including on high-end motorbikes, which would affect US companies like Harley-Davidson Inc. Trump has often cited Harley as an example of a US business that’s being harmed by India’s high import duties.

Modi’s government has also started taking back unlawful migrants from the US to comply with Trump’s demands around immigration. The first batch of more than 100 Indian citizens returned earlier this week — although reports of their mistreatment during the deportation on a US military aircraft caused a public outcry, forcing senior Indian government officials to respond.

Defense Purchases

During Modi’s visit, New Delhi may also signal its willingness to buy more defense products, such as fighter jets and drones, and oil from the US, the people said.

India’s government is already buying 31 drones from the US at an estimated cost of about $4 billion. It also has a global tender open to purchase 114 fighter jets.

Misri said India will also discuss cooperation in advanced and small modular nuclear reactors with the US during Modi’s trip.

The recent amendments to India’s nuclear laws could attract companies such as GE Hitachi Nuclear Energy, Electricite de France SA and Westinghouse Electric Co. to supply reactors for building mega power plants.

“Small modular reactors and advanced modular reactors are subject of discussion both with France and US, and we expect these discussions to progress in the coming months,” Misri said.

Prior to Trump’s meeting, Modi will visit France on Feb. 10 and will meet President Emmanuel Macron.