The U.S. may considerably slash tariffs on Indian exports as New Delhi and Washington close to a commerce deal that would see New Delhi chopping oil purchases from Russia, Indian media outlet Mint reported Wednesday.
As a part of the commerce deal, Washington may lower tariffs on Indian exports to fifteen%-16% from the present 50%, Mint reported citing three unnamed sources conscious of the matter.
India is contemplating elevating its import quota for non-genetically modified corn from the U.S. — at present 0.5 million tonnes yearly — even with a import obligation of 15%, whereas pushing for a mechanism below which each side can revisit tariffs and market entry over time, the report stated.
On Tuesday, U.S. President Donald Trump stated he had acquired assurance from Indian Prime Minister Narendra Modi in a cellphone name that New Delhi would cut back purchases of Russian oil.
“He is not going to purchase a lot oil from Russia. He desires to see that struggle finish as a lot as I do. He desires to see the struggle finish with Russia, Ukraine, and as you understand, they don’t seem to be going to be shopping for an excessive amount of oil,” Trump informed reporters overseas Air Power One, whereas threatening that New Delhi would maintain paying “large” tariffs if it didn’t accomplish that.
In a publish on X on Wednesday morning native time, Modi confirmed the cellphone name with Trump, including that he hoped the 2 international locations proceed to “stand united towards terrorism in all its types,” with out mentioning India’s stance on Russian oil.
Trump final week additionally stated that Modi in a name had agreed to chop Russian oil purchases. India’s international ministry spokesperson stated the next day that he was not conscious of any name between Trump and Modi.
On the query of chopping oil imports from Russia, the spokesperson stated Thursday, “India is a major importer of oil and fuel. It has been our constant precedence to safeguard the pursuits of the Indian client in a risky vitality situation. Our import insurance policies are guided completely by this goal.”
Russian oil has been one of many contentious points within the extended bilateral commerce talks between the U.S. and India. Trump in August levied an extra 25% tariff on exports from India as a “penalty” for its Russian oil purchases, taking general duties to 50% and upending relations between the 2 international locations.
Indian officers have argued that it if the nation have been to cease shopping for Russian oil, a plan should be put in place to stabilize vitality markets, together with a contingency to fill the shortfall in provide if Russian barrels are taken off the market.
Each side had agreed to spice up bilateral commerce to $500 billion by 2030 in a gathering in February earlier than talks collapsed with India reportedly not agreeing to widen entry to its huge agricultural and dairy sectors.
The U.S.-India relations additional soured when Modi met with Russian President Vladimir Putin and Chinese language President Xi Jinping in Beijing final month, in a transfer seen as a sign to Trump of India’s willingness to spice up reasonably than lower ties with Moscow.
India has grow to be the world’s second largest purchaser of Russian crude, trailing China, for the reason that begin of the struggle in Ukraine in 2022, importing 1.6 million barrels per day within the first half of this 12 months, up from 50,000 bpd in 2020, in line with the U.S. Power Data Administration.
In current weeks, Trump has softened his rhetoric, expressing optimism in regards to the ongoing negotiations and reiterating on Tuesday that Modi was a “nice good friend.”
The finalization of the commerce settlement will probably be communicated to Trump and Modi on the ASEAN summit later this month, although neither Trump nor Modi has formally confirmed their attendance for the occasion, Mint reported.
“The broad contours of the settlement are in place, however delicate areas reminiscent of agriculture and vitality want political clearance earlier than the deal will be introduced,” the report stated.
India’s Ministry of Commerce and Trade, the U.S. Division of Commerce and the U.S. Commerce Consultant didn’t instantly reply to CNBC’s requests for feedback.
Knowledge from government-backed India Model Fairness Basis reveals, bilateral commerce between New Delhi and Washington reached a report $132.2 billion in fiscal 12 months ending March 2025, up by greater than 10% from the earlier 12 months.
India’s exports to the U.S. jumped 11.6% to $86.51 billion, whereas imports from the nation rose 8% to $45.69 billion.
