Trump hints tariffs on India to drop as trade deal nears
Trump hints tariffs on India to drop as trade deal nears
Trump says tariffs on India could fall as talks move toward a WTO-compliant trade deal, with officials signaling progress and ongoing negotiations.
US President Donald Trump said the United States will bring down tariffs on India, and that Washington is “pretty close” to a fair trade deal with New Delhi. He noted that the current 50% tariffs on India are among the highest in the world, largely due to a 25% penalty tax tied to Russian oil purchases. “Right now, the tariffs are very high on India because of the Russian oil, and they [India] have stopped doing the Russian oil… It’s being reduced very substantially. Yeah, we will bring the tariffs down at some point,” he told reporters at the White House.
In New Delhi, government officials countered that there is no need for further rounds of negotiation, saying the two sides have been drafting the legal text of the deal since October and that talks are progressing toward a comprehensive, WTO-compliant agreement. “Talks are progressing well between the two sides, and India and the US are negotiating a comprehensive, WTO-compliant trade agreement,” an official said. India has kept in mind sensitive sectors in the discussions and is hopeful of a final agreement after months of push and pull.
Meanwhile, India is looking to diversify its exports. Officials noted that talks extend to other markets as well, with India and New Zealand near finalization and a NZ trade minister planning to visit shortly. An EU trade official is also expected to visit India in December to discuss further trade talks. Commerce and Industry Minister Piyush Goyal emphasized that India will not compromise the interests of farmers, dairy producers, and workers in any trade deals, while pursuing new markets such as Russia.
As negotiations move forward, both sides are aiming for a framework that reduces tariffs and expands bilateral trade, with hopes that a formal pact could be signed in the near future and beneficial terms for India’s agricultural and manufacturing sectors could be secured.
Cover image source: Exclusive Chat With The Newly Sworn-In US Ambassador To India – Sergio Gor 🔗
