India-US Trade Deal Nears Completion as Trump Signals Tariff Reduction; Talks Enter Final Stage

Mumbai | November 12

India and the United States are close to concluding a long-anticipated trade deal, with both sides signaling that negotiations have entered the final stage. The agreement, once signed, is expected to ease the steep tariffs imposed by Washington earlier this year and reset the tone of bilateral trade relations.

The development follows months of back-and-forth discussions after the US administration raised import duties on Indian goods to 50 per cent in August, a move that hit key sectors such as engineering, chemicals and auto components. The proposed accord is likely to pave the way for a gradual rollback of these tariffs, opening the door to a more stable trade framework.

Trump Confirms Tariff Rollback

US President Donald Trump said on Monday that Washington and New Delhi are “getting close” to finalising a fair trade deal. Speaking at the White House during the swearing-in of Sergio Gor as the new US Ambassador to India, Trump said, “We’re getting a fair deal, just a fair trade deal. We had pretty unfair trade deals in the past.”

He added that the current tariff levels were linked to India’s earlier purchases of Russian oil, which have now been significantly reduced. “Right now, tariffs are very high on India because of the Russian oil… it’s been reduced very substantially. We’re going to be bringing the tariffs down,” Trump said, without specifying a timeline.

Talks in Final Phase

A senior Indian government official confirmed that negotiations were largely complete, with no further rounds expected. “We are now awaiting a response from the US; they have to get back to us,” the official said, describing the dialogue as “one of the most comprehensive and WTO-compliant” trade discussions India has undertaken.

Five rounds of talks have been held so far, the last in Washington in October, where both countries ironed out remaining differences. The final text of the agreement is now being prepared, and officials expect an announcement once procedural clearances are complete.

Commerce and Industry Minister Piyush Goyal, speaking at the Udyog Samagam 2025 conference in New Delhi, said the government would not compromise on India’s domestic priorities while pursuing the pact. “We are working for a fair, equitable and balanced trade deal that supports India’s interests,” he said. “At the same time, India will not compromise the interests of its farmers, fishermen, and workers.”

Goyal added that the timeline for the agreement would depend on progress at the official level. “It could happen tomorrow, next month or next year – but as a government, we are prepared for everything,” he said.

Broader Trade Momentum

India is also pushing forward on several other trade fronts. Talks with New Zealand are nearing completion, while negotiations with the European Union and Gulf Cooperation Council continue. Individual discussions with Bahrain and Qatar are also under way and Goyal is expected to visit Israel next week to explore trade opportunities in technology, defence and agriculture.

If concluded, the India-US deal could mark a turning point for India’s exporters. The US remains India’s largest trading partner, accounting for nearly 18 per cent of total exports. Lower tariffs would help boost shipments of engineering goods, pharmaceuticals, and auto components, and strengthen India’s role in global supply chains.

The agreement, officials believe, could also improve investor sentiment and lend stability to India’s external trade position at a time when global markets remain volatile.

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