Tariff Dispute Nears Resolution
The United States and India are close to announcing a major trade agreement. Officials expect the announcement before the end of November. The two countries made progress after Washington agreed to withdraw its penalty tariffs. These tariffs had strained relations for months. The shift came after India reduced its imports of Russian oil, which had triggered part of the penalty.
Focus on Reciprocal Tariffs
Negotiators are now discussing new tariff rates on industrial and agricultural goods. They are considering two ranges: 12–15% or 15–19%. Most product lists for duty-free or reduced-duty access are ready. Both sides want a fair balance that supports trade without hurting domestic industries.
India Opens Market for US Soybean and Corn
India has agreed to allow duty-free imports of US soybeans and corn. The country plans to use imported corn to boost ethanol production, which supports its national biofuel goals. India will also buy non-genetically modified soyabean directly from US suppliers. The United States is not pushing for large soybean exports at the moment, as China is already buying heavily from US producers.
Sensitive Dairy Sector Gets Limited Openings
Dairy trade remained one of the toughest issues in the talks. India has now agreed to allow limited imports of select dairy products. These imports will follow strict safety and regulatory rules. Liquid milk will not enter the agreement. India took a cautious approach because millions of small farmers depend on dairy for income.
A Strategic Step for Both Countries
US President Donald Trump said the deal will strengthen economic and security ties between the two nations. He noted that it will also support US energy exports and encourage new investments. For India, the agreement offers access to reliable feedstock and new trade stability. For the United States, it opens fresh opportunities in agriculture and reduces long-standing tariff disputes.
A New Phase for Agri-Trade
If finalised as expected, the deal will reshape agricultural trade between the two countries. It will create new channels for dairy, soybean and corn. It will also reduce uncertainty for exporters and farmers. Both nations see this agreement as a step toward a stronger and more predictable partnership.