India and U.S. Near Tariff Reduction Deal with Potential Geopolitical Implications

India and the U.S. are on the verge of finalizing a trade agreement that would slash U.S. tariffs on Indian goods from 50% to 15%. The deal, expected to be announced at the upcoming ASEAN summit in Kuala Lumpur, marks a significant step in bilateral trade relations. President Donald TRUMP may meet Indian Prime Minister Narendra Modi to cement the agreement.

The negotiations, ongoing for months, aim to facilitate Indian exports to the U.S. and integrate India's agricultural products into global markets. India may permit imports of non-GMO U.S. corn and soymeal, signaling a shift in trade dynamics. The Mint newspaper reports the deal could include periodic tariff reviews, ensuring adaptability to evolving trade conditions.

Geopolitical undercurrents emerge as India may reduce its reliance on Russian crude oil as part of the agreement. Trump claims Modi assured him India WOULD curtail oil purchases from Russia, though New Delhi has yet to confirm this publicly. The tariff reduction is poised to bolster Indian competitiveness in textiles, pharmaceuticals, and manufacturing.