India and United States Poised to Seal Major Trade Deal Cutting Tariffs

India and the United States are on the verge of finalizing a landmark trade agreement that could sharply reduce tariffs on Indian goods entering the American market. Current duties of nearly 50 percent may fall to around 15 to 16 percent if the deal is signed, offering a significant boost to Indian exporters.

The agreement is expected to focus heavily on energy and agriculture. As part of the arrangement, India would gradually scale back its purchases of Russian crude oil, a move that aligns with Washington’s strategic interests. In return, New Delhi would increase imports of American agricultural products, particularly corn and soymeal, to meet growing domestic demand.

Negotiations have been underway for months, and both governments have kept details under wraps. Officials in New Delhi and Washington have declined to comment publicly, but leaders have acknowledged that trade remains a top priority. President Donald Trump confirmed that he recently spoke with Prime Minister Narendra Modi, emphasizing that their talks centered on trade. Modi also confirmed the discussion but did not provide specifics.

Sources familiar with the talks say the deal will include a mechanism for periodic tariff reviews and measures to ensure reciprocal market access. This structure is designed to prevent future disputes and create a more stable foundation for bilateral trade.

If signed, the agreement would mark a turning point in U.S.-India economic relations. It would not only ease long-standing trade tensions but also strengthen cooperation in energy security and agricultural supply chains. Analysts believe the deal could reshape the balance of trade between the two countries and signal India’s willingness to recalibrate its oil imports away from Russia.

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