New Delhi may increase purchase of US’ corn, ethanol
A trade deal between India and the United States is expected soon. According to a report, the 50% tariff on selected Indian goods could be reduced to 15%. Sources familiar with the trade deal say the energy and agriculture sectors are among the most important on the negotiating table. India may offer some concessions in these areas.
US negotiators are claiming that India could gradually reduce its purchases of Russian crude oil and open the market to non-GM (genetically modified) corn and soymeal from the US.
India believes that American products will be consumed by its rapidly growing domestic poultry, dairy, and ethanol industries. The interests of Indian farmers will not be affected. Currently, India imports approximately 500,000 tons of corn annually from the United States.
US wants to sell premium cheese in India
According to the report, India has clearly told the US side that the current 15% tax on non-GM corn will not be reduced. The US is also pressuring India to allow premium cheeses to enter the market, but India is currently unwilling to agree to this.
It’s worth noting that Trump imposed a 25% tariff on India in April, followed by a 25% penalty on imports of Russian crude oil, bringing the total to 50%. India currently imports 34% of its crude oil needs from Russia, while importing 10% from the United States.
Trump’s ego has held up the deal so far
Former Foreign Secretary Kanwal Sibal stated that an India-US trade deal is on Trump’s table. India will not compromise its domestic interests, but prioritizes the US as a trading partner. The problem lies with Trump’s ego. Trump has secured trade deals by pressuring the EU, Japan, and South Korea. He wanted the same with India, but Trump knows it won’t be easy, so he is adopting a hot-and-cold approach with India.
Tariffs affect exports worth ₹85,000 crore
The US has imposed a 25% retaliatory tariff on India for charging higher tariffs and a 25% tariff as a penalty for buying oil from Russia, due to which India’s exports worth around ₹85 thousand crore are being badly affected.
India has a total tariff of 50%
US President Trump announced an additional 25% tariff on India on August 6. This order was to come into effect on August 27.
The executive order states that this action has been taken against India due to its purchase of Russian oil. Previously, on July 30th, he had announced a 25% tariff on India. Now, India is facing a total tariff of 50%.
Target to increase trade to $500 billion by 2030
India and the US aim to increase bilateral trade from the current $191 billion to $500 billion by 2030. According to commerce ministry data, India’s exports to the US in April-July 2025 grew by 21.64% to $33.53 billion, while imports rose by 12.33% to $17.41 billion.
The United States remained India’s largest trading partner during this period, with trade totaling $12.56 billion. India’s exports to the United States have been steadily increasing since April.
This article has been republished from The Dainik Jagran.