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India-US Trade Deal's First Tranche Nears Closure to Address 50% Tariffs

Officials say the initial package targets reciprocal plus oil‑linked duties, leaving wider market access for later.

Overview

  • Commerce Secretary Rajesh Agrawal said the tariff-focused opening tranche is "near closure" after months of virtual talks.
  • The package is designed to address the 25% reciprocal duty plus the additional 25% penalty tied to Russian oil purchases that together total 50%.
  • Six rounds of negotiations have been completed, including Oct. 15–17 meetings in Washington, and India is awaiting a U.S. response to its latest proposal.
  • Officials describe the agreement as highly detailed and aligned with WTO norms, with sensitive sectors such as agriculture and dairy deferred to later phases.
  • Separately, state-run firms finalized a one-year contract to import about 2.2 MTPA of LPG from the U.S. Gulf Coast for 2026, a deal presented as outside the trade pact but supportive of balancing flows.