India and US Push to Seal Long-Delayed Trade Pact as Tariff Talks Resume in New Delhi
Trade negotiators are back at the table—and this time, they're bringing a sledgehammer.
The long-stalled dance between Washington and New Delhi has kicked off again. Officials from both economic powerhouses have reconvened, aiming to finally crack the code on a comprehensive trade agreement. The goal? To dismantle tariff barriers that have hampered billions in potential commerce for years.
Why This Round Feels Different
Forget the diplomatic niceties of past rounds. The current talks carry a new, tangible urgency. Global supply chain reshuffling and fierce competition for strategic partnerships have turned this bilateral deal from a 'nice-to-have' into a geopolitical imperative. Both sides are signaling a willingness to move past legacy sticking points.
The Sticking Points: Digital and Physical
The negotiation battlefield is twofold. On one front, it's classic trade: tariffs on agricultural goods, medical devices, and engineering products. On the other, it's the modern arena: data localization rules, digital service taxes, and intellectual property frameworks for tech. Bridging these worlds is the core challenge.
A Deal's Ripple Effect
A breakthrough wouldn't just boost bilateral trade numbers. It would send a seismic signal to global markets about the stability of US-India economic ties. For corporations in both nations, it would finally provide the regulatory certainty needed for long-term investment—something they've craved far more than another central bank press release.
The clock is ticking. Both administrations have political capital riding on a win. The question is no longer if they want a deal, but what they're finally willing to give up to get it. After all, in global trade, the best deal is often the one you close before the other side remembers why they walked away last time.
Switzer presses for tariff phase as Trump keeps pressure on rice
Washington and New Delhi are building the agreement in phases, with the opening stage aimed at removing the retaliatory duties Donald TRUMP placed on Indian goods. The 50% rate also reflects penalties tied to India’s continued purchases of Russian oil.
In November, Trump said he WOULD cut tariffs at some point, but days ago he warned he could act against India over claims of Indian rice being dumped into the US market if dispute grows.
The two governments had planned to finish the first tariff-focused portion of the deal by the fall, but the calendar ran out. In recent weeks, Indian officials have said they now see a chance to close that opening section before December ends.
One official said the talks also covered broader economic and trade ties alongside the push to complete a deal both sides see as mutually useful after several rounds that failed to bridge gaps.
Refiners buy discounted Russian crude as Reliance stays out
Four of India’s seven largest refiners are now shopping for Russian crude as DEEP discounts pull buyers toward barrels that avoid sanctions, while Reliance Industries stays out.
Indian Oil Corp. and Bharat Petroleum Corp. have bought about 10 cargoes of unsanctioned crude, including Urals, in recent days. Hindustan Petroleum Corp. is seeking supply for January delivery.
Including Nayara Energy, which continues to take Russian crude even after being blacklisted in Europe, those four refiners made up just over 60% of India’s oil imports this year, based on tracking firm Kpler.
None of the companies returned emailed questions. One large buyer is missing from that group. Reliance is now avoiding Russian oil even under a term contract with Rosneft for 500,000 barrels a day. Retreat reflects sanctions.
Russian crude is trading NEAR $40 to $45 a barrel in India as price cuts try to outrun political risk. India imported more than 2 million barrels per day at the June peak. That flow is expected to slide to about 1.3 million barrels in December, helped by cargoes booked before new curbs, and then sink lower in January.
It remains unclear whether those reduced volumes satisfy Trump, who has accused India of financing Vladimir Putin’s war and demanded the two cut ties. A long-awaited trade deal still remains unfinished.
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