Tariffs On Indian Exports To US To Drop 15-16% Upon Trade Deal? New Report Claims…

India and the United States are reportedly close to finalising a major trade agreement that could reduce US tariffs on Indian goods from the current 50% to around 15–16%, according to Mint. The deal, still under discussion, mainly focuses on the energy and agriculture sectors.

One key element being discussed is India’s gradual reduction of crude oil imports from Russia. This aligns with Washington’s efforts to reduce global dependence on Russian energy. Officials familiar with the talks told Mint that discussions are in the final phase, with both sides aiming to conclude the deal before the upcoming ASEAN Summit later this month, where a formal announcement may be made. 

According to the report, both India’s Ministry of Commerce and Industry and the White House did not immediately comment on the report.

The proposed agreement could also strengthen cooperation in agriculture. India may allow higher imports of certain US products, including non-genetically modified corn and soymeal. This would address long-standing US concerns about access to India’s agricultural market, which is one of the most protected globally. The deal may also include a system for regular tariff and market access reviews to ensure balanced trade terms over time.

In return, the US is expected to significantly lower tariffs on Indian goods. This would make Indian exports, especially textiles, engineering goods, and pharmaceuticals, more competitive in the American market.

The progress comes after a recent phone conversation between US President Donald Trump and Indian Prime Minister Narendra Modi. Trump told reporters that trade and energy were the main topics of discussion. “Energy was also part of our discussion, and Prime Minister Modi assured me that India would limit its oil purchases from Russia,” he said.

PM Modi confirmed the call through a post on X, thanking Trump for his Diwali greetings and noting that both countries are working to strengthen ties. “On this festival of lights, may our two great democracies continue to illuminate the world with hope and stand united against terrorism in all its forms,” he wrote.

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