India has offered tariff cuts on imports of US farm products such as almonds and cranberries as a further concession to the United States, two government sources said, hoping to avert President Donald Trump’s reciprocal tariffs set for next week.

Unlike China, Canada and the European Union, India is actively seeking to appease the Trump administration and is open to cutting tariffs on over half of US imports worth $23 billion, Reuters reported earlier this week.

In a series of meetings in New Delhi with Brendan Lynch, the assistant US trade representative for South and Central Asia, India agreed to cut tariffs on bourbon whiskey and agricultural products such as almonds, walnuts, cranberries, pistachios and lentils, one of the sources familiar with discussions, said.

India and the visiting US officials have decided to hold a wrap-up session on Saturday morning to conclude the three-day talks on the proposed bilateral trade agreement, government sources said on Friday.

“Securing a favourable deal is a priority for Indian negotiators,” a second government source said, adding that India has aligned its offers with US priorities, particularly in the agriculture industry and some other sectors.

Both sources spoke on condition of anonymity due to the sensitivity of the talks.

The commerce ministry didn’t respond to email request for comment, while the US embassy spokesperson in New Delhi said: “We don’t have anything to share on private diplomatic discussions.”

India lowered duties for bourbon whiskey to 100 per cent from 150 per cent last month.

Import duties range from 30 per cent to 100 per cent on agricultural products such as cranberries, almonds, walnuts and around 10 per cent on lentils.

However, there is still resistance in government circles to lowering tariffs for dairy products, rice, wheat and maize, the source said, adding India is seeking greater market access for shipments of fruits such as pomegranates and grapes besides rice to the US market.

The negotiators are expected to agree on the framework for the broad contours of the first phase of the bilateral deal, expected to be signed by fall 2025, the sources said.

In 2024, exports of US agriculture and allied products to India totalled nearly $2 billion, including $452 million in alcoholic beverages and $1.3 billion in fruits and vegetables while India’s exports to the US stood at about $5.5 billion.

Tax on LNG

India is considering a proposal to scrap import tax on US liquefied natural gas (LNG) to boost purchases and help cut the trade surplus with Washington, a key irritant for Trump, four government and industry sources said.

The United States is India’s second biggest supplier but the two sides are looking to ramp up volumes for India’s energy-hungry economy, one of the fastest growing in the world. Qatar is the top LNG supplier to India.

During Prime Minister Narendra Modi’s US visit last month, India pledged to increase US energy purchases by $10 billion to $25 billion in the near future, while both leaders agreed to target $500 billion in bilateral trade by 2030.

Scrapping the import tax would make US LNG more price competitive, and help trim India’s trade surplus with the US, another government source said. The surplus totalled $45.4 billion last year.