India, US Near Trade Deal to Cut Import Tariffs to 15-16%

• India and the US near a pact cutting US tariffs on Indian goods to 15–16%
• India to gradually reduce Russian oil imports and expand US energy trade
• India to raise import quotas for non-GM US corn and soymeal

India and the United States are on the cusp of finalizing a trade agreement that has been installed status, expected to reduce American tariffs on Indian imports from around 50% respectively to 15%-16%.

The agreement, which centers on energy and agriculture, is expected to be voiced to the sell during the ASEAN Summit that will follow talks between Indian Prime Minister Narendra Modi and United States President Donald Trump.

A major component of the agreement is that India will reduce the percentage of Russian Crude oil it purchases; it currently purchases about 34% of its total crude oil from Russia. Alongside that, India and the United States will also have an energy cooperation agreement.

Both nations are finalizing a bilateral trade agreement aimed at tariff reduction and boosting India US economic ties. The trade negotiations could reshape trade policy India, strengthen India US relations, and impact global trade news through lower US India imports duties.

Washington is also expected to offer trade concessions in areas, including trade concessions related to ethanol, as New Delhi looks at more alternatives to Russian oil towards American distributors.

In exchange, India could allow more imports of non-GM (genetically modified organism) corn and soymeal from the United States. India may still impose a 15% duty, but the United States could potentially get more import quotas due to increasing demand in the poultry, dairy, and ethanol sectors.

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One of the official stated, "Talks are also advancing on permitting imports of non-GM soymeal for both human and livestock consumption. However, there is still no final clarity on tariff reductions for dairy products, including high-end cheese, even though it is a key demand from the US team". The agreement is also said to include the implementation of a regular review of tariffs and market access.

The trade talks are taking place with the United States implying that it would prefer India to limit its oil purchases from Russia; a prior rise in purchases of Russian oil had triggered a punitive 25% tariff on Indian exports to the United States.

Trump stated, "I just spoke to your prime minister today. We had a great conversation. We talked about trade. We talked about a lot of things, but mostly the world of trade — he is very interested in that".

"He is not going to buy much oil from Russia. He wants to see that war end as much as I do. He wants to see the war end with Russia, Ukraine, and as you know, they’re not going to be buying too much oil", he added.

India has stated that it will gradually reduce its olive oil Imports from Russia, but the two nations appear to have a commitment to establishing a bilateral trade framework through a policy agreement.