Trump and Modi’s tariff tango: Russian oil, soybeans and a delayed deal
India and the US near a breakthrough on slashing Trump-era duties, but elections and egos could impede the long-awaited trade pact
A long-awaited trade deal between India and the United States may be facing political delays, despite broad agreement that would cut the steep 50 per cent duties imposed on New Delhi by US President Donald Trump to about 15-16 per cent, according to two people familiar with the talks.
The sources, who declined to be identified given sensitive negotiations, said that while Washington is eager to conclude the deal quickly to appease US farmers caught in the crossfire with trade frictions with Beijing in advance of the 2026 US midterm elections, New Delhi has been cautious about making any announcement before the November elections in Bihar – a key state that produces both corn and soybeans – fearing potential political backlash.
The two sides had aimed to announce a first phase of the trade agreement during a possible meeting between Trump and Prime Minister Narendra Modi on the sidelines of the Association of Southeast Asian Nations summit in Malaysia from October 26–28.
However, with the Indian state election approaching in mid-November, Modi is only expected to attend virtually, with the delegation led instead by Indian Foreign Minister Subrahmanyam Jaishankar.
Indian Commerce Minister Piyush Goyal on Thursday said that “progress” was being made with the US and that a “fair and equitable” deal will be sealed in the “near future”.