India, which has been engaged in tariff negotiations after being imposed high tariffs by U.S. President Donald Trump, is expected to become the first country to reach a trade agreement with the United States, foreign media reported.
According to a report by Reuters on the 30th (local time), citing comments from an anonymous Indian government official, India is reportedly considering proposing "future most-favored-nation treatment" (FMFN) to the United States. Earlier, President Trump said during a meeting with reporters at the White House that tariff-related negotiations with India were progressing very well and that the two countries would soon reach a trade agreement.
"Future most-favored-nation treatment" refers to the condition that if India grants better tariff terms to other countries than those it gives to the United States, such terms will also apply to the United States. The official noted, "This clause acts as a type of future guarantee and is the only way to make the agreement with the United States sustainable."
Another official stated that India could offer conditions much more favorable to the United States than those it provides to the United Kingdom or the European Union (EU), adding, "However, they are asking to ensure that India becomes a major supplier to the United States from the supply chain left by China."
Reuters reported that among the 24 item groups that the United States and India trade, 19 have been selected for quick negotiations, while five item groups with significant disagreements, including agricultural products and military supplies, may be discussed in the second-phase negotiations. India is said to have requested reduced tariffs on U.S. frozen meats, various seafood, poultry, and fruit juices from the current rate of 30% to 100% down to levels of 0% to 5%, while also seeking favorable tariffs on textiles, toys, leather products, furniture, jewelry, and auto parts, as well as long-term preferential measures for engineering products such as pharmaceuticals and industrial equipment.
Earlier, India had moved to reduce tariffs on American products as soon as President Trump took office. Indian Prime Minister Narendra Modi also visited the White House to promise a trade agreement to address the trade deficit, as well as the purchase of U.S. weapons and the expansion of energy imports. Initially, the two countries had agreed to finalize the agreement by the end of this year with the goal of expanding their trade volume to $500 billion (approximately 714.9 trillion won) by 2030.
However, as President Trump announced reciprocal tariffs and decided to impose a 26% reciprocal tariff on India, negotiations between the two countries are accelerating. On the 21st, U.S. Vice President J.D. Vance met with Prime Minister Modi in New Delhi to discuss trade issues.