India and the U.S. Move Closer to a Trade Deal that Could Reduce Tariffs to 15%

SadaNews - India and the United States are nearing a trade agreement that could reduce the tariffs imposed on Indian exports to between 15% and 16% compared to about 50% currently, according to the "Mint" newspaper, citing three individuals familiar with the matter who were not named.

The newspaper mentioned that New Delhi might agree, as part of the deal, to gradually reduce its imports of Russian oil, and allow the United States to export larger quantities of non-GMO corn and soybeans.

The potential agreement is expected to be announced during a meeting between U.S. President Donald Trump and Indian Prime Minister Narendra Modi on the sidelines of the upcoming ASEAN (Association of Southeast Asian Nations) summit scheduled in Kuala Lumpur from October 26 to 28.

Indian Commerce Minister Piyush Goyal and other officials declined to comment on the report, while the U.S. Embassy in India referred inquiries to the Office of the U.S. Trade Representative.

India Reduces Russian Oil

Trump stated yesterday that he spoke with Modi, who assured him that India "will not buy much oil from Russia," a statement the U.S. President reiterated after he had mentioned it last week. New Delhi has not confirmed plans to reduce its imports of Russian oil, but state refinery companies have indicated intentions to cut purchases, while Reliance Industries – typically the largest supplier of Russian oil – has shifted to relying on supplies from the Middle East.

India has become one of the leading importers of Russian oil since the outbreak of the war in Ukraine in 2022, benefiting from discounted prices, with Russian oil accounting for about one-third of its total imports despite U.S. pressures aimed at curbing these flows.

One official indicated that Indian trade negotiators made significant progress in the talks held in the United States last week, as both sides aim to finalize the trade agreement and reduce tariffs.