- Washington may slash tariffs on Indian exports from 50% to 15–16%.
- India could reduce Russian oil imports as part of the agreement.
- The deal could be finalized during the ASEAN Summit later this month.
The United States and India appear to be nearing a breakthrough trade deal that could reshape economic ties between the two nations. According to reports from Mint, Washington is considering reducing tariffs on Indian exports from the current 50% to about 15–16%. In return, New Delhi may agree to gradually cut its imports of Russian oil — a key sticking point in the negotiations.
The move would mark a significant step forward in bilateral relations, which have been strained in recent months over India’s continued energy dealings with Moscow. President Donald Trump told reporters that Prime Minister Narendra Modi had assured him India would “not be buying much oil from Russia” and shared his desire to see the war in Ukraine come to an end.
Trade and Energy at the Heart of Negotiations
Beyond oil, the proposed trade deal is expected to cover a range of goods, including agricultural imports. India may increase its quota for U.S. non-genetically modified corn, currently capped at 0.5 million tonnes annually, while both sides aim to establish a system for reviewing tariffs and market access over time.
However, agricultural access remains politically sensitive for New Delhi. Indian officials have emphasized that energy security and protecting domestic farmers remain top priorities. “Our import policies are guided entirely by the need to safeguard Indian consumers in a volatile energy market,” an Indian foreign ministry spokesperson said.
A Diplomatic Balancing Act
The talks come amid a complex geopolitical backdrop. India has deepened ties with Russia and China, with Modi recently meeting Presidents Putin and Xi in Beijing — a move viewed in Washington as defiance. Yet, trade between the U.S. and India continues to grow, hitting a record $132.2 billion in the last fiscal year.
Analysts believe final approval for the trade deal could come during the ASEAN Summit later this month, pending political clearance on key issues like energy and agriculture. If sealed, it could restore momentum to one of the world’s fastest-growing bilateral partnerships.
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A tariff reduction and oil import compromise could mark a new phase in U.S.-India relations — balancing economic pragmatism with geopolitical realities. Both nations have much to gain from cooperation, but the fine print will determine how far this newfound goodwill truly goes.
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