US likely to cut tariffs on Indian imports to 15%-16%

India and the United States are reportedly close to finalising a long-awaited trade agreement that could reduce US tariffs on Indian goods to around 15–16% from the current 50%, reported Mint. .

According to the report, the proposed agreement mainly focusses on the energy and agriculture sectors. One of the key elements under discussion is India’s gradual reduction of crude oil imports from Russia, a move that aligns with Washington’s efforts to limit global dependence on Russian energy supplies.

When asked for a response, India’s Ministry of Commerce and Industry and the White House did not immediately comment on the report.

The talks reportedly involve steps to strengthen cooperation in energy and agriculture — two areas that have been central to past trade negotiations between the two nations. As part of the agreement, India may allow higher imports of certain US agricultural products such as non-genetically modified corn and soymeal, sources told Mint.

This move could help address long-standing US concerns about access to India’s agricultural market, which remains one of the most protected globally. The report added that the deal may include a system for regular tariff and market access reviews, aimed at ensuring that both sides maintain balanced trade terms over time.

In return, the US is expected to lower its import tariffs on Indian goods significantly, bringing them down to 15–16% from the existing levels of up to 50%. Such a reduction could make Indian exports — especially in sectors such as textiles, engineering goods, and pharmaceuticals — more competitive in the American market.