Good news for India by Trump, US likely to cut tariffs on Indian imports to…, close to finalising…
India and the United States are close to finalizing a major trade agreement that may lower U.S. tariffs on Indian imports from the current rate of 50% to 15–16%. According to media reports this deal is expected to be formally announced at the ASEAN Summit to be held later this month. The energy and agriculture sectors can be the most important part in the India-U.S. trade deal.
India-U.S. Trade Deal: Details
India is expected to gradually reduce its imports of Russian crude oil in line with U.S. geopolitical goals to reduce global dependence on Russian energy supplies. In return, the U.S. will lower tariffs on Indian goods. It will benefit Indian sectors like textiles, engineering goods, and pharmaceuticals by making them more competitive in the American market.
India may increase imports of specific U.S. agricultural products like non-genetically modified corn and soymeal. It will address U.S. complaints about limited access to India’s protected agricultural market. The agreement may include mechanisms for regular review of tariffs and market access to ensure balanced trade terms over time.
India-U.S. Trade Deal: Diplomatic Context
The recent progress was made after a phone conversation between President Donald Trump and Prime Minister Narendra Modi. Both leaders discussed trade and energy cooperation. The U.S. side highlighted India’s willingness to reduce crude oil purchases from Russia.
PM Modi publicly acknowledged the conversation and reiterated the U.S.-India partnership on social media without sharing specific trade details. The move comes after several years of stalled negotiations and tariff disputes, with prior talks breaking down in 2020 on issues of market access and reciprocal tariffs.
If finalized, this agreement will have the most important step forward for India-U.S. economic ties. It may also boost India’s exports and provide U.S. businesses more access to the Indian consumer market.
News