India and US Approach Historic Trade Deal to Reduce Tariffs by 35%: What You Need to Know

India-US tariff deal focuses primarily on energy and agricultural sectors.

According to a Wednesday report by Mint, India and the United States are approaching a breakthrough on a long-delayed trade agreement that would substantially reduce US tariffs on Indian imports from 50% to approximately 15%-16%.

The report, citing three informed sources, indicates the agreement may involve India gradually reducing its Russian crude oil imports as part of the negotiation terms.

When contacted by Reuters, neither the Ministry of Commerce and Industry in India nor the White House provided an immediate response.

US President Donald Trump confirmed having a conversation with Prime Minister Narendra Modi on Tuesday, with trade being the primary topic of discussion.

Trump mentioned that energy issues were also addressed during their talk, noting that PM Modi had assured him India would place limitations on its oil purchases from Russia.

Prime Minister Modi acknowledged the conversation on social platform X, stating: "Thank you, President Trump, for your phone call and warm Diwali greetings. 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."

According to Mint's sources, the negotiations may allow increased imports of non-genetically modified US corn and soymeal into India. The potential agreement might also establish a mechanism for periodic reviews of tariffs and market access conditions.

The report suggests that the finalization and announcement of this bilateral trade agreement are likely to occur during the upcoming ASEAN Summit this month.