India-US Trade Deal Nears Completion, Tariffs to Drop to 15-16 Percent: Report

India and the United States are reportedly on the verge of concluding a long-pending trade deal that could significantly reduce American tariffs on Indian imports.

According to a media report citing three individuals familiar with the matter, the current tariff rate of around 50% may be brought down to 15%-16%.

Focus on Energy and Agriculture Sectors

The proposed agreement is expected to center around energy and agricultural trade. As part of the deal, India may gradually reduce its purchases of Russian crude oil, according to the report. Both the Indian Ministry of Commerce and Industry and the White House have yet to comment on the development.

US President Donald Trump stated that he had spoken with Prime Minister Narendra Modi on Tuesday, with the conversation largely focused on trade matters. Trump added that energy was a major part of their discussion, and that PM Modi had assured him India would limit its oil imports from Russia.

Leaders Exchange Diwali Greetings

Prime Minister Modi also confirmed that he spoke with President Trump, though he did not disclose specific details of their conversation.

"Thank you, President Trump, for your phone call and warm Diwali greetings," PM Modi posted on X, referring to the Hindu festival celebrated on Monday.

"On this festival of lights, may our two great democracies continue to illuminate the world with hope and stand united against terrorism in all its forms," he added.

Possible Inclusions in the Trade Deal

As part of the ongoing negotiations, India may agree to allow greater imports of non-genetically modified US corn and soymeal, the report said. The agreement could also introduce a mechanism to periodically review tariffs and assess market access between the two nations.

According to the report, the formal announcement of the bilateral trade deal may take place during the upcoming ASEAN Summit later this month.