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IndiaUS Trade Deal’s First Tranche Nears Closure, Aiming to Roll Back 50% Tariffs

Both sides report progress, with the tariff fix set to precede slower market‑access negotiations.

Overview

  • A senior Indian official said the opening package is close to final, designed to address the full 50% levy on Indian goods that includes a 25% reciprocal duty and a 25% oil‑related penalty.
  • White House economic adviser Kevin Hassett said an understanding is close to the finish line, though officials noted the announcement will come on a mutually agreed date without a fixed deadline.
  • Negotiators have completed six rounds, including Oct. 15–17 talks in Washington, and India is awaiting a US response to its latest proposals.
  • The US removed added duties on 254 agricultural and processed food items effective Nov. 13, easing a burden on more than $1 billion of Indian exports.
  • Separately, India’s state‑run firms secured a one‑year US LPG supply contract of about 2.2 MTPA for 2026 to help balance trade, while India insists that sensitive sectors like agriculture and dairy remain protected in later phases.