[ad_1]
US President Donald Trump said tariffs on India will be reduced “significantly”, signaling easing of tensions over New Delhi’s Russian oil purchases as the two countries move closer to a trade deal.
peppermint It was first reported on September 22 that US tariffs on India could be reduced from 50% to 15-16%, and a deal is likely to be announced in November. Speaking to reporters at the White House on Monday (US time), Trump said the US was getting “close” to reaching a trade deal with India, and tariffs would be reduced “at some point”.
“We are working on a very good deal with India. There will be a significant reduction in tariffs. It will happen at some point,” Trump told reporters at the swearing-in ceremony of Sergio Gore as US Ambassador to India.
The statement comes as both sides enter the final round of negotiations to conclude a bilateral trade agreement (BTA), aimed at resolving long-standing issues related to market access, tariffs and investment rules.
The autumn 2025 deadline was set by the leaders of India and the US following Indian Prime Minister Narendra Modi’s visit to Washington in February this year. In a joint statement on February 13, they committed to conclude the BTA by the end of 2025, which falls between September and November according to the Indian calendar.
Questions sent to the Union Commerce Ministry remained unanswered.
A senior government official on Tuesday said India does not see the need for an additional round of talks at this stage as discussions between the two sides are progressing well. “New Delhi is now awaiting Washington’s formal response to its proposal, which was shared during the recent round of BTA talks.”
The official said India and the US are negotiating a comprehensive, WTO-compliant trade agreement that addresses tariff and non-tariff barriers while promoting a predictable trade environment.
“We have taken into account the sensitivities of each sector during negotiations to ensure that the agreement supports India’s long-term trade interests,” the official said on condition of anonymity.
The US has imposed heavy tariffs on a wide range of Indian goods in response to India’s continued purchases of Russian crude oil. The overall 50% tariffs, the highest among all of America’s trading partners, went into effect on August 27, causing a significant decline in foreign shipments.
However, with regard to oil purchases from Russia, New Delhi has said that its imports are guided by national interest and the need to ensure price stability, while continuing to engage diplomatically with Washington to avoid further trade disruptions.
According to commerce ministry data, bilateral trade between India and the US stood at $71.41 billion in the first six months of FY26, up 11.8% from $63.89 billion a year ago. Exports to the US grew 13.4% from $40.42 billion in H1FY20 to $45.82 billion, while imports increased 9% from $23.47 billion to $25.59 billion.
A recent report by the Global Trade Research Initiative (GTRI) said that between May and September, India’s exports to the US fell 37.5%, from $8.8 billion to $5.5 billion, one of the sharpest short-term declines in recent years. The report further said that tariff-free products also suffered the most, with exports of smartphones and pharmaceuticals falling by 58% and 15.7% respectively. Industrial metals and auto parts, which faced the same tariffs for all suppliers, saw a slight decline of 16.7%, largely due to a decline in US demand rather than competitiveness issues.
Ajay Srivastava, co-founder of the Global Trade Research Initiative, said exporters need immediate policy support to deal with the tariff impact. “Priority measures should include increased interest-parity support to reduce financing costs, faster duty waivers to ease liquidity pressures and emergency credit lines for MSME exporters. Without immediate intervention, India risks losing market share to Vietnam, Mexico and China – even in regions where it previously had a strong position,” he said.
[ad_2]
