NEW DELHI, India: India is making a calculated trade move to avoid a tariff showdown with Washington, offering key agricultural concessions aimed at easing tensions before U.S. tariffs take effect next week.

According to two government sources, India has proposed tariff reductions on a range of U.S. farm goods, including almonds, cranberries, pistachios, walnuts, and lentils, in its latest bid to secure a favorable bilateral trade deal and avert President Donald Trump's planned retaliatory duties.

In meetings held this week in New Delhi with Brendan Lynch, Assistant U.S. Trade Representative for South and Central Asia, Indian negotiators agreed to concessions that also include a further reduction in duties on bourbon whiskey. One source described the ongoing talks as focused on aligning India's trade stance with U.S. priorities, especially around agricultural imports.

Trade talks are "progressing well" and the final agreement "will benefit both nations," Indian Trade Minister Piyush Goyal said this week.

"Securing a favourable deal is a priority for Indian negotiators," a second government source added, noting that India is showing greater flexibility on over half of the US$23 billion in annual imports from the U.S. While China, the European Union, and Canada have taken a firmer stance, India is actively seeking to de-escalate.

India lowered tariffs on bourbon whiskey from 150 percent to 100 percent last month. Current duties on agricultural items, such as cranberries, almonds, and walnuts, range from 30 percent to 100 percent, while lentils face a 10 percent tariff.

The sources, who declined to be named due to the sensitivity of the discussions, said an outline of the initial phase of the bilateral deal could be finalized by late Friday, with a signing targeted for fall 2025.

India's trade ministry did not respond to a request for comment, and the U.S. embassy in New Delhi said, "We don't have anything to share on private diplomatic discussions."

While progress has been made, Indian officials continue to resist pressure to lower tariffs on dairy products, rice, wheat, and maize. In return, India is asking for expanded access for its own exports to the U.S., including grapes, pomegranates, and basmati rice.

In 2024, the U.S. exported nearly $2 billion worth of agricultural and related goods to India, including $452 million in alcoholic beverages and $1.3 billion in fruits and vegetables. By comparison, India's agricultural exports to the U.S. totaled approximately $5.5 billion.