India offers final trade proposal to remove 50% US tariffs India announced reforms on Wednesday to simplify import quality checks, the latest effort to break a months-long deadlock with Washington over punitive tariffs that have reached 50 percent on Indian goods. The move comes as New Delhi presented what officials describe as a "final" trade proposal to the United States, focused primarily on removing a 25 percent penalty imposed over India's purchases of Russian oil. According to two Indian government sources, the offer includes immediately eliminating tariffs on US imports such as walnuts, almonds, apples, industrial goods, and luxury motorcycles in exchange for Washington withdrawing the additional 25 percent levy. US Describes India's Offer as "Best Ever Received" US Trade Representative Jamieson Greer told lawmakers last week that India's proposals represent "the best we've ever received as a country," particularly in expanding market access for American agricultural products. Deputy US Trade Representative Rick Switzer visited New Delhi from December 9-11 to advance negotiations, though Commerce Minister Piyush Goyal clarified the visit was "not centered around negotiations" but rather an introductory meeting. The United States currently imposes a total 50 percent tariff on most Indian exports, comprising a 25 percent reciprocal tariff and an additional 25 percent penalty tied to India's Russian oil purchases. This rate is among the highest imposed by Washington on any trading partner, placing Indian goods at a disadvantage compared to competitors like Vietnam and the Philippines, which face 19-20 percent duties. Trade Talks Pause for Holidays Indian exporters have urged the government to prioritize removing the Russian oil penalty, telling officials they can manage a 25 percent tariff since the "lowest global tariff is around 19 percent, but 50 percent tariffs are hurting," according to a government source. The talks have now paused for year-end holidays and are expected to resume in January when Sergio Gor, President Donald Trump's nominee for US ambassador to India, takes up his post. Both nations have missed their fall 2025 deadline to finalize the first tranche of a bilateral trade agreement aimed at doubling commerce to $500 billion by 2030 from the current $191 billion. Commerce Secretary Rajesh Agrawal said India is "close to a framework deal" but declined to provide a timeline. "The two teams of negotiators have broadly done what they can. The ball is now in President Trump's court," a second Indian official told The Hindu.
