Major tariff cut for India, says Trump, as trade deal nears

US president Donald Trump said tariffs on India will be lowered “very substantially”, signalling an easing of tensions over New Delhi's Russian oil purchases as the two countries near a trade deal.

- Dhirendra Kumar

Mint first reported on 22 September that US tariffs on India may be reduced to 15-16% from a steep 50%, and that a deal is likely to be announced in November. Speaking to reporters at the White House on Monday (US time), Trump said the US is “getting close” to reaching a trade agreement with India, and that tariffs will be reduced “at some point”.

“We're working on a very good deal with India. The tariffs will come down very substantially. It will happen at some point,” Trump told reporters at the swearing-in ceremony of Sergio Goras the US ambassador to India.

The statement comes as the two sides enter the final round of talks to conclude a Bilateral Trade Agreement (BTA), aimed at resolving longstanding issues related to market access, tariffs and investment rules.