US May Cut India Tariff to 15%-16% in Trade Deal
New Delhi Might Agree to Gradually Reduce Imports of Russian Oil
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India and the U.S. are nearing a trade deal that could lower tariffs on Indian exports to 15%-16% from about 50%, the Mint newspaper reported, citing three unidentified people aware of the matter.
New Delhi may agree to gradually reduce its imports of Russian oil and allow the U.S. to export more non-genetically modified American corn and soymeal, according to the report. An agreement may be announced when President Donald Trump and Prime Minister Narendra Modi possibly meet at the Association of Southeast Asian Nations summit in Malaysia, the newspaper said.
The Asean Leaders Summit is scheduled in Kuala Lumpur from Oct. 26 to 28.Ìý
India’s Commerce Minister Piyush Goyal and other officials didn’t respond to the newspaper’s request for information, while the U.S. embassy in India referred queries to the Office of the US Trade Representative.Ìý
Trump imposed 50% duties on India’s U.S.-bound exports last month over New Delhi’s imports of Russian oil, as well as what the U.S. has called its high tariffs and non-tariff trade barriers to American goods. The rate was the highest in Asia and has led to a sharp downturn in U.S.-India ties, which had been warming for years.Ìý
Still, the two sides have continued discussions toward a deal. During a Diwali celebration at the White House on Oct. 21, Trump said ModiÌýassured himÌýduring a call that India would wind down its Russian oil purchases, raising the prospect of a reprieve. In a post on X, Modi acknowledged the call but did not share the contents of the discussion.Ìý
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. — Narendra Modi (@narendramodi)
India became a major importer of Russian crude after Moscow’s invasion of Ukraine in 2022, buying oil at a discount. The U.S. and allies say the purchases are helping to fuel Russia’s war effort. Russian oil makes up about one-third of India’s overall imports despite the U.S. push to curb flows. Ìý
The U.S. president said last week that he had received assurances from Modi that India would stop buying oil from Russia, but New Delhi hasn’t confirmed whether it would comply and the Ministry of External Affairs said it wasn’t aware of a call between Trump and Modi at the time.
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New Delhi has not confirmed plans toÌýcurbÌýRussian oil imports following U.S. pressure, but state refiners have signaled cuts, and Reliance Industries Ltd., usually the biggest buyer of Moscow’s crude, has shifted toward Middle Eastern supplies.
Trade negotiators from New Delhi made solidÌýprogressÌýin their talks in the U.S. last week, an official said on the weekend, as the two sides seek to clinch a deal and reduce the tariffs.Ìý
