US May Cut India Tariff Rate to 15-16% in Trade Deal, Mint Says

By Nasreen Seria

Oct 21, 2025 (Bloomberg) –India and the US are nearing a trade deal that could lower tariffs on Indian exports to 15%–16% from about 50%, the Mint newspaper reported, citing three unidentified people aware of the matter.

New Delhi may agree to gradually reduce its imports of Russian oil and allow the US to export more non-genetically modified American corn and soymeal, according to the report. An agreement may be announced when US President Donald Trump and Prime Minister Narendra Modi possibly meet at the Association of Southeast Asian Nations summit in Malaysia, the newspaper said.

The Asean Leaders Summit is scheduled in Kuala Lumpur from Oct. 26 to 28.

India’s Commerce Minister Piyush Goyal and other officials didn’t respond to the newspaper’s request for information, while the US embassy in India referred queries to the Office of the US Trade Representative. 

Trump said Tuesday he spoke with Modi, who assured him India was “not going to buy much oil from Russia,” reiterating a similar claim he made last week. New Delhi has not confirmed plans to curb Russian oil imports, but state refiners have signaled cuts, and Reliance Industries Ltd., usually the biggest buyer of Moscow’s crude, has shifted toward Middle Eastern supplies.

Read more: Trump Again Says Modi Agreed to Ease Russian Energy Buys

India became a major importer of Russian crude after the start of the war in Ukraine in 2022, buying oil at a discount. Russian oil makes up about one-third of India’s overall imports despite the US push to curb flows.  

Trade negotiators from New Delhi made solid progress in their talks in the US last week, an official said on the weekend, as the two sides seek to clinch a trade deal and reduce the tariffs. 

© 2025 Bloomberg L.P.

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