India, US Near Trade Pact Cutting Tariffs To 15–16 Per Cent, Likely To Be Announced At ASEAN Summit: Report

India and the United States are close to finalising a long-delayed trade agreement that could slash American tariffs on Indian imports from around 50 per cent to 15–16 per cent, Mint reported, citing person aware of the matter.

The deal, focused on energy and agriculture, may be announced during the ASEAN Summit later this month when Prime Minister Narendra Modi meets US President Donald Trump.

Trump said he spoke with Modi, adding, “We talked about trade. We talked about a lot of things, but mostly the world of trade — he is very interested in that.”

He also claimed that Modi assured him India would “limit its oil purchases from Russia.”

The discussions come amid Washington’s efforts to reduce India’s reliance on Russian crude, which currently accounts for about 34 per cent of India’s oil imports.

With energy and agriculture at the core of negotiations, India may agree to gradually scale down its imports of Russian crude, according to a source cited by Mint.

These purchases had earlier triggered a punitive 25 per cent levy on Indian exports, in addition to the 25 per cent reciprocal tariffs imposed in April.

India may also consider opening its markets further to non-genetically modified (non-GM) American corn and soymeal.

“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," a person familiar with the matter quoted by Mint.

Trump recently reiterated that “He [Modi] is not going to buy much oil from Russia. He wants to see that war end as much as I do.”

However, India’s external affairs ministry has maintained that any reduction in Russian oil imports will be gradual and based on economic viability.

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