India and the United States are close to concluding a trade agreement that could reduce tariffs on Indian exports from approximately 50% to 15-16%, Mint reported, citing three unnamed sources familiar with the situation, UNN writes.
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"India and the US are close to concluding a long-awaited trade deal that could reduce current tariffs on Indian exports from 50% to 15-16%," three sources familiar with the matter said.
It is noted that as energy and agriculture become key cards at the negotiating table, India may agree to a gradual reduction in Russian oil imports, sources said on condition of anonymity. These purchases reportedly led to the imposition of a punitive 25% tariff on Indian exports, exceeding the 25% reciprocal tariffs announced in April.
According to the report, as Bloomberg writes, New Delhi may agree to a gradual reduction in Russian oil imports and allow the US to export more non-genetically modified American corn and soybean meal. The deal could be announced during a possible meeting between US President Donald Trump and Prime Minister Narendra Modi at the ASEAN summit in Malaysia, the publication reports.
The ASEAN leaders' summit will be held in Kuala Lumpur from October 26 to 28.
Last month, Trump imposed 50% tariffs on India's exports to the US due to India's imports of Russian oil, as well as what the US called high tariffs and non-tariff trade barriers on American goods. This tariff level was the highest in Asia and led to a sharp deterioration in US-India relations, which had been warming for years, Bloomberg notes.
Nevertheless, both sides continue negotiations on the agreement. During the Diwali celebration at the White House on Tuesday, Trump said that Modi assured him during a conversation that India would reduce purchases of Russian oil, which increased the prospect of a deferral. In his post on X, Modi confirmed the conversation but did not share the content of the discussion.
India became a major importer of Russian oil after Russia's invasion of Ukraine in 2022, buying oil at a discount. The US and allies say these purchases help fuel Russia's war efforts. Russian oil accounts for about a third of India's total imports, despite US efforts to limit supplies.
New Delhi has not confirmed plans to limit Russian oil imports after US pressure, but state-owned refineries have signaled a reduction, and Reliance Industries Ltd., usually the largest buyer of Moscow oil, has reoriented to supplies from the Middle East.
Trade negotiators from New Delhi made significant progress in talks in the US last week, an official said over the weekend, as both sides seek to conclude a deal and lower tariffs.