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India and U.S. Poised to Seal Trade Deal Cutting Tariffs to 15–16%

Washington seeks energy concessions tied to reduced Russian oil purchases.

Overview

  • Talks are in final stages on a pact that would lower U.S. duties on Indian goods from roughly 50% to about 15–16%, according to multiple reports citing Mint.
  • President Trump says Prime Minister Modi assured him India will limit Russian oil buys, while New Delhi has not confirmed the assurance and reiterates imports are guided by consumer interests.
  • The package under discussion includes wider access for U.S. non‑GM corn and soymeal, a possible increase to India’s non‑GM maize quota at a 15% duty, and a mechanism for periodic tariff and market‑access reviews.
  • The United States imposed an additional 25% levy in August on Indian exports—lifting overall tariffs to around 50%—in response to India’s purchases of discounted Russian crude.
  • Reports indicate an announcement could come at the ASEAN Summit if clearances are secured, with India considering a gradual shift from Russian crude (about 34% of its imports), potential ethanol imports from the U.S., and informal guidance for state oil firms to diversify sourcing.