India Makes Final Trade Offer to the U.S.; Tariff Removal at the Core of Proposal

New Delhi/Washington: India and the United States are inching closer to finalizing their long-pending trade deal. In a revised proposal presented to the U.S., India has agreed to several American demands while placing key conditions of its own. At the heart of the proposal is India’s demand to remove the additional 25% tariff imposed on Russian oil, a measure introduced by the Trump administration in August as part of punitive duties on imports from India.

According to sources cited by The Hindu, India has requested the immediate removal of tariffs on imports including walnuts, almonds, apples, and industrial goods. In exchange, the U.S. would reduce its tariffs on Indian goods by 25%. The revised proposal is part of a larger bilateral trade agreement, but India is currently focused on securing relief from the 25% tariff.

Key Amendments in India’s Proposal

The U.S. delegation, led by Deputy U.S. Trade Representative Rick Switzer, visited India from 11–12 December. A senior Indian official confirmed that India has presented its final, modified offer to the American team. The government’s primary focus has been on eliminating penalties related to Russian oil, which Indian exporters say have caused significant losses. While exporters could manage with a 25% tariff, the 50% duty imposed under the Trump administration severely impacts trade.

Details of the Deal

Under the revised offer, India has proposed an immediate removal of tariffs on items such as almonds, walnuts, apples, industrial goods, and luxury motorcycles, contingent upon the U.S. lifting its additional 25% penalty tariff. An Indian official noted that negotiators from both sides have maximized what they could offer, and the decision now lies with the Trump administration. Commerce Minister Piyush Goyal, in his recent statements, hinted that India has clearly put its cards on the table.