The tariff dispute between India and the United States is nearing its end, as both nations are expected to finalize a groundbreaking deal soon, according to a Mint report. India and the United States have reached the verge of concluding a long-discussed trade agreement that will significantly reduce the massive 50% tariffs imposed by the U.S. on Indian products.
These tariffs could potentially decrease to 15-16%, focusing on agriculture and energy sectors. The discussion is rumored to include a significant change in India's importation of crude oil from Russia, potentially reducing its reliance on Russian oil.
Deal Expected by Month-End?
The report also claims the trade deal could be finalized by the end of the month, prior to the ASEAN Summit. Both governments, however, have yet to make an official statement on this matter. Meanwhile, President Trump recently stated that India has agreed to cut back on Russian oil imports, a claim contested by New Delhi, asserting no such agreement was made.
Source: aajtak
Emphasis on Energy and Agriculture
The trade talks are predominantly centered around enhancing collaboration in energy and agriculture, two sectors that have been pivotal in previous bilateral trade discussions. According to Mint, India might allow higher imports of certain U.S. agricultural products, such as non-GMO corn and soybean meals.
Opportunity for U.S. Agriculture?
The measure could address the longstanding concerns of the U.S. regarding access to India's agricultural market. This agreement would offer the U.S. a substantial market, potentially including a mechanism for regular tariff reviews and market access research, aimed at sustaining trade equilibrium between the nations.
A Gift for Indian Exports
In exchange, the U.S. may notably reduce tariffs on Indian goods, cutting them to 15-16%. This reduction would allow Indian exports—particularly textiles, engineering goods, and pharmaceuticals—to be more competitive in the American market.
Source: aajtak
Phone Call between Modi and Trump
Earlier this week, a phone call took place between U.S. President Donald Trump and Indian Prime Minister Narendra Modi, focusing on cooperation in trade and energy sectors. President Trump informed reporters about this conversation, highlighting energy as a part of the talks, and stated that PM Modi assured him of India's efforts to restrict oil purchases from Russia.
Prime Minister Modi confirmed this discussion through a post on X (formerly Twitter), thanking President Trump for his Diwali wishes. Modi wrote, "President Trump, thank you for your phone call and warm Diwali greetings. In this festival of light, may our two great democracies continue to light the world with hope and stand united against all forms of terrorism." While Modi did not disclose details about trade discussions, his message suggests an active effort to strengthen bilateral relations as they approach a potential agreement.
