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India’s government is evaluating options ranging from a trade deal, cutting tariffs and importing more goods from the US if President Donald Trump follows through with threatened trade action.

Officials in the Narendra Modi-led administration have sketched out various scenarios to counter any steps a new Trump administration may take to narrow India’s trade surplus with the US, which was $35.3 billion for the year ended March 31, people familiar with the matter said. The US was India’s largest trading partner for the period, data from India’s Ministry of Commerce and Industry show.

Among the options discussed, the government could buy more whiskey, steel and oil from the US, the people said, asking not to be identified as the talks are private. It could also reduce some import tariffs, with officials drawing up a list of likely products, such as bourbon whiskey and farm goods like pecan nuts, they said.

One of the proposals being considered is to reduce duties on goods imported from US states that are politically important for the Republican party, one of the people said.

The plans under discussion are part of India’s larger strategy to avoid any confrontation with Trump, and also benefit from any potential US-China trade war, the people said. Bloomberg News reported Tuesday that New Delhi is set to take back at least 18,000 illegal Indian immigrants from the US to help placate the Trump administration.

India’s Ministry of Commerce and Industry didn’t immediately respond to an email seeking further information. The plans haven’t been finalized and are still under discussions, the people said.

In his first few days in office, Trump said he would slap a 25% tariff on Mexico and Canada and hike duties on China by 10%. He also threatened countries in the European Union and BRICS group of developing nations with increased tariffs.

Indian officials are also considering a limited trade deal with the US under one of its scenarios, people familiar with the matter said. New Delhi had tried unsuccessfully to implement this during the first Trump administration.

The plan under discussion would include reducing some “most-favored nation” tariffs, which are imposed on countries with which India doesn’t have a bilateral trade deal.

Here are more details of the scenarios being discussed, according to people familiar with the matter:

--With assistance from Sudhi Ranjan Sen.

(Updates with Trump’s comments on China tariffs.)

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