Major trade pact on the horizon, India-US set to cut tariffs to 15%: Reports

India and the United States are nearing the final stages of a significant trade agreement that could see American tariffs on Indian goods reduced from as high as 50% to around 15–16%, according to reports.

The deal, which focuses on energy and agriculture, reportedly aims to enhance market access and strengthen bilateral economic ties. Expected to be announced during the upcoming ASEAN Summit, the agreement could provide a major boost to Indian exporters in sectors such as textiles, pharmaceuticals, and engineering goods.

Recently, Trump hosted a special Diwali event at the White House, where he termed Prime Minister Narendra Modi “a great person” and said he loves “the people of India.” 

The event was attended by the Indian Ambassador to the US Vinay Kwatra, the new US Ambassador to India Sergio Gor, FBI Director Kash Patel and Director of National Intelligence Tulsi Gabbard. Leading business leaders from the Indian diaspora were also part of the celebrations.

Trump lit the diya in the Oval Office, calling it “a symbol of faith in the victory of light over darkness” and extended his “warmest wishes to the people of India.”

“It's knowledge over ignorance and good over evil. During Diwali, revellers recall ancient stories of enemies defeated, obstacles removed and captives freed. The glow of the diya flame reminds us to seek the path of wisdom and to work with diligence and to always give thanks for our many blessings,” he added.

The Indian Ambassador thanked President Trump for opening up the White House to mark the festival of Diwali.

While speaking to reporters, Trump claimed he spoke to Prime Minister Modi on Tuesday and the two sides are “working on some great deals between our countries.”

“I just spoke to your Prime Minister today. We had a great conversation. We talked about trade. We talked about a lot of things, but mostly the world of trade. He’s very interested in that,” he said.

Trump also reiterated that he had been assured that India is “not going to buy much oil from Russia.”

“We just have a very good relationship, and he's not going to buy much oil from Russia. He wants to see that war end as much as with Russia, Ukraine. And as you know, they're not going to be buying too much oil. So, they've got it way back, and they're continuing to cut it way back,” he emphasised.

While India has started buying Russian oil in the last few years, China is Moscow’s biggest energy buyer.

The Trump administration imposed an additional 25% tariff on India in August for purchasing Russian oil while taking no action against China.

On whether he would impose additional tariffs on China for purchasing Russian energy, Trump said Beijing would likely be paying 155% tariffs from November 1 in retaliation for export controls on rare earths.

“As of November 1, China will have about 155% tariffs. I don’t think it's sustainable for them. So, I want to be nice to China, but China has been very rough with us,” he noted.

(with inputs from syndicated feed)