US May Cut Tariffs on Indian Imports to 15–16% Under New Deal

India and the United States are reportedly close to finalising a long-awaited trade pact that could slash US tariffs on Indian goods to around 15–16% from the current 50%, according to a report. The agreement, expected to be announced at the upcoming ASEAN Summit later this month, focuses primarily on energy and agriculture cooperation.

Sources familiar with the negotiations said talks have entered their final phase, with both sides aiming to strengthen trade ties after years of stalled discussions. A key element of the proposed deal involves India’s gradual reduction of crude oil imports from Russia, aligning with Washington’s efforts to curb global reliance on Russian energy.

In return, the US is likely to lower import duties on Indian exports, particularly in sectors such as textiles, engineering goods, and pharmaceuticals — areas where reduced tariffs could significantly enhance India’s competitiveness in the American market.

The agreement may also include a framework for regular tariff and market access reviews to ensure balanced trade relations. On India’s part, New Delhi is expected to ease restrictions on certain US agricultural products, such as non-genetically modified corn and soymeal, addressing longstanding American concerns about limited access to India’s farm sector.

The progress follows a recent phone conversation between US President Donald Trump and Indian Prime Minister Narendra Modi, during which the leaders discussed trade and energy cooperation. Trump said Modi had assured him that India would limit oil purchases from Russia.

If finalised, the deal would represent the most significant step forward in India-US trade relations since 2020 and could boost bilateral trade beyond the current $200 billion mark, signalling a renewed phase of economic cooperation between the two democracies.