Indian PM Modi Will Offer 'Gifts' To Trump Avoid Trade War Drums

JAKARTA - Indian Prime Minister Narendra Modi will come with a "gift" when he meets US President Donald Trump on Thursday, with the hope that a tariff concession, a new business deal and the prospect of cooperation on China will win Trump's heart.

Trump, who has not served as president for less than a month, has used tariff threats against his friends and opponents to try to find new trade deals, investments, or law enforcement assistance.

India may be no exception. Although Trump had a warm relationship with Modi during his first term of office, he called India the "largest violator" in his trade and his levies on steel and aluminum hit India heavily.

Ahead of his meeting at the White House on Thursday, Modi had prepared promises including an increase in purchases of liquefied natural gas, combat vehicles and jet engines, according to Indian government officials who declined to be named.

Indian officials are also considering trade negotiations, a possible US agricultural export deal to India and investment in nuclear energy, as well as tariff cuts in at least a dozen sectors, including electronics, medical equipment and surgery, as well as chemicals.

According to the Trump team, these things need to be improved by India, according to other sources who know their thoughts.

This is a "gift" to Trump, said one of the sources, who declined to be named as they reviewed the private meeting.

Meanwhile, Modi wants help in the case of billionaire Gautam Adani, his ally charged by the Justice Department in November on suspicion of a bribery scheme. Adani denies wrongdoing.

Another complicated issue will be the background: an alleged Indian intelligence plan to kill a Sikh activist in the United States during the administration of Trump's predecessor, Joe Biden.

"This time, tariff issues will be a major issue," said Richard Rossow, head of India's program at the Center for Strategic and International Studies, a think tank in Washington.

"This will be a boxing match," he said.

"I think India is willing to take a few punches, but there are limits."

The US has a trade deficit of $45.6 billion with India. Overall, the average US trade-weighted rate is around 2.2%, according to World Trade Organization data, compared to India's 12%.

The Trump administration has promised to apply reciprocal rates to any country that imposes import duties on US imports, a move that will raise concerns about the spread of the global trade war.