The US and India may reach a trade agreement, with the US planning to reduce tariffs on Indian goods imported into the US to 15%-16%.

Three informed sources said that India and the United States are on the verge of reaching a trade agreement, which could see India reduce tariffs on goods exported to the US from about 50% to 15%-16%. It is reported that the Indian government may agree to gradually reduce imports of Russian oil and allow for more exports of non-GMO corn and soybean meal from the US. If US President Donald Trump and Indian Prime Minister Narendra Modi can meet at the ASEAN Summit in Malaysia, the two sides may announce this agreement. The ASEAN Leaders Summit is scheduled to take place in Kuala Lumpur from October 26th to 28th. Indian Commerce Minister Piyush Goyal and other officials did not respond to requests for comments, while the US embassy in India has referred inquiries to the US Trade Representative's office. Last month, Trump imposed a 50% tariff on goods imported from India, citing India's import of Russian oil, as well as what the US claims are high tariffs and non-tariff trade barriers set by India against US goods. This tax rate is the highest in the Asian region and has led to a significant deterioration in US-India relations that have been warming up for years. However, negotiations on an agreement between the two sides are still ongoing. On Tuesday, Trump said that Modi had promised him during a call that India would gradually reduce purchases of Russian oil, which could help ease the tariffs. Modi confirmed the call on Twitter, but did not disclose the details of the discussion. After Russia launched a special military operation against Ukraine in 2022, India became a major importer of Russian oil, purchasing it at discounted prices. The US and its allies argue that these purchases provide financial support to Russia's military actions. Despite US pressure to restrict imports of Russian oil, Russian oil still accounts for about one-third of India's total oil imports. Last week, Trump said he had received a commitment from Modi that India would stop purchasing Russian oil, but the Indian government has not confirmed whether it will do so, and the Indian Ministry of External Affairs stated at the time that they were unaware of the call between Trump and Modi. The Indian government has not confirmed any plans to restrict imports of Russian oil under pressure from the US, but state-owned refineries have hinted at reducing imports; Reliance Industries, typically the largest buyer of Russian oil, has also turned to supplies from the Middle East. An official revealed over the weekend that Indian negotiators made substantial progress in talks held in the US last week, with both sides seeking to reach an agreement and reduce tariffs.