India and U.S. near deal to cut tariffs on exports

India and the United States are close to finalising a trade agreement that would sharply reduce U.S. tariffs on Indian exports, according to Mint and Reuters. Three people familiar with the matter told Mint that talks had progressed on a framework covering energy, agriculture, and wider market access.

The proposed deal would reduce average U.S. tariffs on Indian goods from around 50% to between 15% and 16%. A formal announcement is expected later this month, potentially coinciding with the ASEAN Summit, where Prime Minister Narendra Modi and President Donald Trump may meet on the sidelines.

According to the report, India would gradually scale back purchases of Russian crude oil — currently about one-third of its total imports — in return for improved access for Indian manufacturers and exporters. In parallel, India is expected to allow increased imports of non-genetically-modified U.S. corn and soymeal.

Neither government has issued an official comment. The Ministry of Commerce and Industry in New Delhi declined to respond to media requests, and the White House has not confirmed any details of the negotiations.

The proposed reduction would reverse years of elevated tariffs introduced through a combination of trade disputes and sanctions-linked surcharges. The existing 50% rate reflects both earlier punitive measures and additional duties connected to India’s discounted oil imports from Russia.

Trade officials have held multiple rounds of discussion this year to normalise tariffs and restore preferential access. In April, India’s trade secretary, Sunil Barthwal, said the government aimed to deepen ties with the United States and increase bilateral trade to USD 500 billion by 2030.

Analysts view the development as a significant signal of alignment between the two economies. Lower tariffs would improve Indian competitiveness in key export sectors — including textiles, engineering, and chemicals — while offering the U.S. a broader foothold in India’s food and energy markets.

Sources told Mint the draft includes a mechanism for periodic review of tariff levels and market-access commitments, though the full text has not been released. It is unclear whether the 15–16% rate would apply across all product categories or to a defined set of goods.

If concluded, the agreement would represent a decisive recalibration of India–U.S. trade relations, linking tariff policy to wider energy and supply-chain cooperation. Both sides are expected to confirm next steps once legal and procedural clearances are complete.