In a major development signaling a thaw in recent trade tensions, the United States is reportedly preparing to slash tariffs on Indian imports to around 15-16%, down from the current average of nearly 50%. The move, expected to be formalized soon, comes amid efforts by both nations to recalibrate economic relations strained by past policy disputes and align strategic interests.
According to reports, the proposed deal will focus on key sectors such as energy, agriculture, and manufacturing. India, in turn, may agree to moderate its dependence on Russian crude oil and open its market to select U.S. agricultural exports, including non-GM soymeal and corn. The tariff reduction could provide a significant boost to Indian exporters especially in textiles, engineering goods, and pharmaceuticals by making them more competitive in the U.S. market.
Officials familiar with the matter suggest that the agreement may be announced around the upcoming ASEAN Summit, where trade and security cooperation are expected to dominate discussions. While neither New Delhi nor Washington has formally confirmed the deal, analysts see it as a strategic balancing act strengthening bilateral ties while signaling India’s continued global economic rise. If finalized, this pact could mark one of the most substantial tariff rollbacks in Indo-U.S. trade history.
