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USIndia First-Phase Trade Deal Nears Announcement Focused on Tariff Reset

A near-term first tranche would replace this year’s steep levies with lower reciprocal rates, setting the stage for broader market‑access talks.

Overview

  • Officials on both sides signal the agreement is close, with President Donald Trump and White House adviser Kevin Hassett saying a tariff deal is near the finish line.
  • The initial package centers on reciprocal tariff levels, with reports pointing to reductions into roughly the low‑teens range, while details on rolling back Russia‑linked penalties remain under discussion.
  • The US has already eased pressure by granting exemptions on about 254 Indian farm items worth roughly $1 billion and by cutting duties on numerous food products such as tea and spices.
  • India has trimmed Russian crude purchases, private and state refiners have scaled back new orders from sanctioned entities, and New Delhi has lined up a one‑year contract to import 2.2 million tonnes of US LPG in 2026.
  • Regional watchers, including Pakistan, are tracking the deal’s outcome, with Islamabad citing the talks as a reason to delay a joint USPakistan trade statement as officials tout prospects for lifting USIndia trade toward $500 billion by 2030.