India-US Trade Deal Nears Completion: Trump Tariffs to Ease, Bilateral Trade Set to Surge by 2030

Listeners, here’s the latest on India–US tariff news and headlines, especially as they relate to Trump, for your India Tariff News and Tracker. India and the United States are on the brink of finalizing a major interim trade deal. President Donald Trump has pointed to what he calls a “much different deal than we had in the past,” with both sides now indicating a formal announcement may come soon. For months, Trump’s administration levied steep tariffs on Indian products, with duties spiking to as high as 50 percent over the summer as a penalty for India’s continued—though now declining—purchases of Russian oil. This 50 percent figure included a 25 percent “reciprocal” tariff plus an additional 25 percent penalty, and hit major sectors like textiles, pharmaceuticals, jewelry, and electronics, triggering a 37.5 percent drop in some Indian export shipments between May and September, according to Global Trade Research Initiative and other sources. Trump’s tariff strategy caused Indian goods to be far less competitive compared with rivals from Vietnam, Bangladesh, and China. Exporters and industry bodies in India reported shrinking margins, factory shutdowns, and jobs at risk, particularly in labor-intensive manufacturing hubs. According to Finance Outlook India, policymakers responded by pushing aggressive export market diversification, targeting Latin America, Africa, and Southeast Asia, and by looking at possible relief for the worst-hit sectors. Recent weeks have brought a glimmer of optimism. White House economic adviser Kevin Hassett stated the deal is “close to the finish line,” while Indian officials, including Commerce Minister Piyush Goyal, emphasized India will only sign if it protects domestic sectors and is “fair, equitable, and balanced.” One sticking point is India’s imports of Russian oil, which have dropped markedly due to mounting US pressure, with state oil refiners slashing Russian purchases by 45 percent. Meanwhile, India has signed a new agreement to import LPG from the US—about 10 percent of its needs—helping reduce its trade surplus with the US and offering Washington a reason to scale back tariffs. In the coming agreement, tariffs on Indian goods could be dialed back to somewhere between 12 and 19 percent. The US has already rolled back tariffs on roughly 254 Indian agricultural products—valued at up to $1 billion—including items like tea, spices, nuts, and coffee. This rollback provides a boost for Indian exporters and signals an easing of the toughest trade friction, as reported widely by NDTV Profit and India Today. Listeners should note that Trump’s tariffs remain a major policy tool, with threatened rates as high as 500 percent for countries that keep trading with Russia. Yet, this new trade deal aims to create a more stable environment, with both countries expected to double their bilateral trade to $500 billion by 2030, realign global supply chains, and strengthen their broader Indo-Pacific strategies. Apparel, tex This content was created in partnership and with the help of Artificial Intelligence AI.