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India and U.S. Near First Tranche of Trade Pact to Resolve 50% Tariffs

The immediate package targets reciprocal duties, leaving the wider agreement for later.

Overview

  • Commerce Secretary Rajesh Agrawal said the tariff-focused first tranche is near closure and is designed to tackle the full 50% U.S. levy on Indian goods, including the 25% penalty tied to Russian oil purchases.
  • Officials describe a two-part Bilateral Trade Agreement, with the initial tariffs package moving fastest as President Donald Trump signals he may lower duties at some point.
  • Talks have completed six rounds, and an Indian team visited Washington on October 15–17 to restart negotiations after the August tariff escalation derailed the prior schedule.
  • The pact is being framed as highly detailed and WTO‑compliant, with India resisting expanded U.S. access to sensitive sectors such as agriculture and dairy.
  • Separately, India’s state-run firms finalized a one-year 2.2 MTPA LPG import contract from the U.S. Gulf Coast for 2026, which officials say is outside the trade deal but supports balancing flows.