India and the US are in advanced negotiations that may reduce US reciprocal tariffs to 15–16%, potentially announced at the ASEAN Summit next week.
US is urging India to reduce its dependence on Russian crude; recent purchases by Reliance from West Asia suggest early diversification.
Washington is pushing for increased exports of non-GMO corn and soymeal to India to meet rising domestic demand.
Key negotiation points include reducing Russian oil reliance and boosting US agricultural imports
US May Cut Tariffs to 15–16%; India Could Reduce Russian Oil, Boost Agri Imports from US
The finalisation of the US-India bilateral trade deal is expected to be announced at the ASEAN (Association of Southeast Asian Nations) Summit next week
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Summary
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India and the US have entered an advanced stage of bilateral trade negotiations, which could see a sharp reduction in US reciprocal tariffs to 15–16% from the previously higher-than-expected 50%, reports said.
Energy and agriculture remain the key topics at the negotiating table, with Washington actively pushing New Delhi to cease oil imports from Russia.
Last week, US President Donald Trump claimed that Prime Minister Narendra Modi had assured him that India would stop importing Russian oil. However, in response to the claims, the Ministry of External Affairs stated that “consumer interest” remains the priority and guiding principle for any shifts.
Currently, Russia accounts for around 34% of India’s crude oil imports, while about 10% comes from the US.
India Inc Looks for Alternatives
According to a Bloomberg report, Reliance Industries Ltd purchased West Asian crude oil last week and is likely to place more orders — a move that reflects growing Western pressure to slash Russian oil revenue.
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Reliance Industries Ltd bought around 2.5 million barrels from Iraq and Qatar. The company has typically been the largest single buyer of Moscow’s crude oil in India.
US Eyes India’s Agri Market
India is also expected to expand its market access for more non-genetically modified American corn and soymeal, according to a report by Mint.
As China asserts its dominance on trade and tariffs, the US is actively looking for access to alternate markets. China has drastically reduced its US corn imports to $331 million in 2024, down from $5.2 billion in 2022.
According to sources cited by Mint, New Delhi is likely to consider the US request for greater market access for corn, in response to rising domestic demand — including from the ethanol industry.
When Can We Expect the Trade Deal
The finalisation of the US-India bilateral trade deal is expected to be announced at the ASEAN (Association of Southeast Asian Nations) Summit next week.
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Trump and Modi are expected to meet on the sidelines of the summit. However, neither has officially confirmed their participation yet.
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