The latest on the India-US trade negotiations- The US may reduce tariffs on Indian imports from a steep 50% to 15–16% as a part of their trade deal, as per a report by Mint, after India agreed to cut its reliance on Russian oil purchases. The US had earlier imposed an additional 25% tariff on India as a punishment for buying Russian oil, which, according to Washington, was indirectly supporting the escalation of the Russia-Ukraine war. According to the Mint report, India and the United States are nearing a long-stalled trade agreement that hinges on energy and agriculture.
India may ease curbs on US corn and soymeal imports
As part of negotiations with Washington, India may allow increased imports of non-genetically modified US corn and soymeal in response to rising domestic demand from poultry feed, dairy inputs, and ethanol industries.
“Talks are also advancing on permitting imports of non-GM soymeal for both human and livestock consumption. However, there is still no final clarity on tariff reductions for dairy products, including high-end cheese, even though it is a key demand from the US team,” reported Mint citing a source.
Currently, India allows imports of around 0.5 million tonnes of maize under restricted quotas. The country had earlier been reluctant to open up its agriculture sector, fearing that increased imports could hurt local farmers.
There is no confirmation from the Indian government on the Russian oil purchase, and financialexpress.com could not verify the veracity of the claims made in the report. However, according to the Mint, the Indian side may not make any formal announcement on this front. Instead, state-run oil marketing companies are expected to be informally advised to diversify crude sourcing towards the US.
As both sides have previously missed deadlines for the trade negotiations, the Indian side is aiming for a November 2025 conclusion. Mint reported citing sources that finalisation of the bilateral trade agreement is likely to be announced at the ASEAN Summit this month.
Trump says Modi assured India will limit Russian oil imports
US President Donald Trump earlier said that he had spoken to Indian Prime Minister Narendra Modi on Tuesday, with the discussion largely focusing on trade. Trump added that energy was also part of their talks, and that Modi had assured him India would limit its oil purchases from Russia. “He’s not going to buy much oil from Russia. He wants to see that war end as much as I do,” Trump told reporters in the Oval Office.
Modi confirms call with Trump
Modi also said the two leaders had talked but gave no details about what was discussed. “Thank you, President Trump, for your phone call and warm Diwali greetings,” Modi said on X. “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 said.
Trade dynamics between the three countries
Currently, Russia accounts for about 34% of India’s crude imports. About 10% (by value) of the country’s current oil and gas needs are imported from the US.
Bilateral trade between India and the US stood at $71.41 billion in H1 FY26, up approximately 11.8 % year-on-year, as per the commerce ministry data. Indian exports to US rose approximately 13.4 % in that period.