Despite the new steps taken by both sides to enhance trade cooperation, questions about the content of the agreements signed and the complex nature of the relations between the two powers remain.

Trade barriers have been eliminated

After protracted negotiations between the parties to remove obstacles to strengthening trade and economic cooperation, Washington and New Delhi have reached a certain mutual understanding on a number of fundamental issues related to removing tariff barriers. Considering the goal set to increase bilateral trade relations (currently around $130 billion) to $500 billion by 2030 and New Delhi’s recent successful engagements with Brussels, Ottawa, and a number of its other important partners, the US and India are moving towards concluding a new trade deal for mutual tariff reductions under the patronage of US and Indian leaders.

The US president unexpectedly announced a significant reduction in tariffs against India, which he himself had previously raised. Under the new terms of the drafted agreement, the tariffs imposed by the US on Indian goods in August 2025 will be reduced from 50% to 18% – the lowest rate for a South Asian country. India, in response, also agreed to take reciprocal steps to substantially reduce tariffs on imported American goods.

However, Washington’s claim that New Delhi is ready to reduce tariffs to zero has not yet been confirmed. According to the US, India........

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