India Eyes End To 25% Trump Tariff Ahead Of Major Petroleum And Defense Trade Talks

Trump Tariff News: Before the start of the next phase of bilateral trade talks (BTA) with America, India wants the abolition of the 25 percent duty imposed as a penalty. Currently, Indian goods are subject to a 50 percent duty in America (India US Trade Deal). This includes a 25 percent reciprocal duty. America has imposed an additional 25 percent duty on India as a penalty due to purchasing oil from Russia.

Petroleum deal with America

Commerce and Industry Minister Piyush Goyal said that India may purchase more petroleum from the United States in the future, as India's demand is expected to grow. India imports 80 percent of its oil needs. Goyal also called for increased cooperation with the United States in nuclear energy.

India-US trade agreement

Goyal is currently on a visit to the United States to discuss trade issues with both countries. This visit is considered crucial for getting trade agreement negotiations between the two countries back on track. The United States wants tariff exemptions to sell its agricultural products in the Indian market.

US Pushes For Petroleum And Defense Deals

The United States is pressing India to sign big agreements in petroleum and defense sectors to boost American exports. At present, India exports more to the US than it imports. New Delhi, however, is pushing for a broader trade agreement that can shield its exports from heavy tariffs. Currently, India exports around $86 billion annually to America, but with a 50 percent duty, nearly $35 billion worth of exports may face serious setbacks.

India Balances Trade And GDP Gains

Most of India’s exports to the US are tied to labor-intensive industries, meaning any disruption could hit jobs at home. Sources say India will now prioritize overall national gains during trade talks. If certain concessions to Washington on selected products can result in wider GDP growth, India may adopt that route. The focus is on protecting employment while also ensuring long-term benefits for the country’s economy.