India-US Trade Deal Moves Closer to Completion: What You Need to Know About Upcoming Tariff Changes

India-US Trade Agreement Update

Recent talks suggest that the first phase of the India-US bilateral trade agreement is almost finalized. This agreement aims to tackle the steep tariffs that the Trump administration imposed on Indian goods, specifically the 50% tariff on specific imports. Additionally, it aims to handle the 25% tariff on Indian goods that enter the US for purchasing Russian crude oil.

A government official stated, “We are actively working with the US. Our negotiations have two parts: one will take longer, while the other—a package to address tariffs—is nearing completion. We should have good news soon.” This package is crucial. Without addressing the 25% penalty on Indian imports, the agreement might lack substance.

The agreement, part of several negotiation packages, is expected to be announced through a coordinated effort between both countries at a later date. One notable aspect of this trade focus is India’s state-owned oil companies planning to import cooking gas from the US in 2026. This move reflects India’s initiative to balance trade with the US rather than a direct outcome of ongoing negotiations.

India and the US are working to reduce India’s trade surplus with the US, a significant concern for the previous administration. The bilateral trade, valued at approximately USD 191 billion, aims to double to USD 500 billion by 2030. So far, negotiations have included six rounds of talks, with both nations expecting to finalize initial agreements by fall 2025.

Interestingly, the US remains India’s top trading partner, with bilateral trade hitting USD 131.84 billion in 2024. Even with recent tariff challenges, US exports to India include diverse products like almonds and apples, while India’s exports to the US dropped 11.93% to USD 5.46 billion in September due to these tariffs.

As President Trump noted, the US is close to achieving a “fair trade deal” with India. While this optimism exists, the importance of fulfilling the needs of both countries during these negotiations cannot be overstated.

Keeping an eye on these developments will be vital, as the outcome of this agreement could significantly reshape international trade dynamics.

For more detailed information on trade impacts, refer to resources like The World Bank or The Economic Times.

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US TARIFFS, TRUMP TARIFFS ON INDIAN GOODS, INDIA US TRADE DEAL, FIRST PHASE OF INDIA-US TRADE DEAL NEARING CLOSURE; TO ADDRESS TARIFF ISSUES: OFFICIAL