The U.S. may considerably slash tariffs on Indian exports as New Delhi and Washington close to a commerce deal that might see New Delhi reducing oil purchases from Russia, Indian media outlet Mint reported Wednesday.
As a part of the commerce deal, Washington could cut 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. — presently 0.5 million tonnes yearly — even with a import responsibility of 15%, whereas pushing for a mechanism below which either side can revisit tariffs and market entry over time, the report stated.
On Tuesday, U.S. President Donald Trump stated he had obtained assurance from Indian Prime Minister Narendra Modi in a cellphone name that New Delhi would reduce purchases of Russian oil.
“He isn’t going to purchase a lot oil from Russia. He needs to see that conflict finish as a lot as I do. He needs to see the conflict 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 told reporters abroad Air Force One, whereas threatening that New Delhi would preserve paying “large” tariffs if it didn’t accomplish that.
In a submit 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 varieties,” with out mentioning India’s stance on Russian oil.
Trump final week additionally stated that Modi in a name had agreed to cut Russian oil purchases. India’s overseas ministry spokesperson stated the next day that he was not aware of any call between Trump and Modi.
On the query of reducing oil imports from Russia, the spokesperson stated Thursday, “India is a big importer of oil and fuel. It has been our constant precedence to safeguard the pursuits of the Indian shopper in a unstable power 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 a further 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 had been to cease shopping for Russian oil, a plan must be put in place to stabilize energy 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 trade to $500 billion by 2030 in a gathering in February earlier than talks collapsed with India reportedly not agreeing to widen access to its vast 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 fairly than reduce ties with Moscow.
India has develop into the world’s second largest purchaser of Russian crude, trailing China, because the begin of the conflict 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. Vitality Info Administration.
In current weeks, Trump has softened his rhetoric, expressing optimism concerning the ongoing negotiations and reiterating on Tuesday that Modi was a “great friend.”
The finalization of the commerce settlement will probably be communicated to Trump and Modi at 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 equivalent to agriculture and power want political clearance earlier than the deal may be introduced,” the report stated.
India’s Ministry of Commerce and Business, 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 exhibits, bilateral commerce between New Delhi and Washington reached a record $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.
