In a major update on Indo-US trade relations, President Trump revealed on November 12, 2025, that Washington is nearing agreement with India on a comprehensive trade deal and plans to bring down its current tariffs on Indian imports. With tariff levels now sitting at a staggering 50 % (primarily driven by a 25 % “penalty” duty linked to India’s previous purchase of Russian oil), the potential reduction offers relief for India’s export sectors.

Indian government sources say the two nations are in the final legal-text phase after multiple negotiation rounds, with New Delhi demanding no further talking-rounds. The target is to curb tariffs to somewhere between 15 – 20 % — aligning with rates that competitor countries like Vietnam enjoy from the US.

For India, this deal has dual importance: export revival and strategic partnership deepening amid shifting global trade alignments. Yet the challenge remains: safeguarding the interests of farmers, labourers and sensitive domestic sectors even as tariff thresholds descend.

In short: A breakthrough could unlock a new phase in Indo-US economic cooperation — but the final structure will hinge on how deeply tariffs are cut, which sectors are liberalised and how investment flows are managed.