Maersk Says India Cargo Demand Rising Ahead of Possible US–India Trade Deal

India faces steep U.S. tariffs of about 50 percent, including a 25 percent duty imposed in August over its imports of Russian oil.

Evgenia Filimianova

Published: 12/3/2025, 3:41:51 PM EST

Maersk Says India Cargo Demand Rising Ahead of Possible US–India Trade Deal — Shipping containers are transported on a Maersk Line vessel through the Suez Canal in Ismailia, Egypt. (Amr Abdallah Dalsh/Reuters)

Danish shipping giant Maersk said on Dec. 3 that demand for cargo from India has risen—and is likely to climb further if the United States and India reach a trade deal.

In a customer advisory, published on Wednesday as part of its North America market update, Maersk said demand had increased “as the market anticipates a tariff deal” between Washington and New Delhi.

The company said that its Middle East-Central Loop shipping route, which connects the region with India and North America, continues to operate with consistent weekly departures.

“We expect demand to rise further if a trade deal is reached,” the company added.

Maersk employs more than 100,000 people and operates more than 700 vessels across 130 countries. Its update comes amid signs from Washington that the United States may revise its tariff regime on Indian imports.

Trade Deal

President Donald Trump said on Nov. 10 that the United States was getting close to reaching a “fair trade deal” with India.

He also suggested that tariffs on Indian goods could be lowered if talks continue to progress.

India currently faces a combined U.S. tariff rate of about 50 percent, including a 25 percent duty that Trump imposed in August over the country’s imports of Russian crude.

U.S. trade in goods and services with India reached an estimated $212.3 billion in 2024, up 8.3 percent, or $16.3 billion, from 2023, according to data from the Office of the U.S. Trade Representative.

The U.S. goods trade deficit with India grew to $45.8 billion in 2024, up $2.6 billion from 2023.

In services, the United States moved to a $102 million surplus with India in 2024 after running a $76 million deficit the year before.

“We’re making a deal with India, a much different deal than we had in the past,” Trump told reporters at the Oval Office on Nov. 10. He said that the arrangement would be “good for everybody,” adding that the United States could cut tariffs “at some point.”

The president also said on Nov. 6 that he could travel to India next year at the invitation of Prime Minister Narendra Modi. He described Modi as “a friend,” adding that the two leaders “speak” and would “figure out” a visit, possibly next year.

Trump previously warned that his administration would keep tariffs in place if India resumed major purchases of Russian oil.

India has not commented publicly on claims that it has reduced Russian-oil imports.

Deepali Bhargava, chief economist at Dutch bank ING, said on Dec. 3 that there is a high probability of an India–U.S. trade deal emerging in 2026.

She put the probability at about 70 percent, saying several sticking points have eased as India adjusts its ties with Russia and responds to U.S. concerns over the trade balance.

Red Sea and Suez Canal

Maersk’s Dec. 3 advisory also addressed conditions in the Red Sea and Suez Canal, saying it continued to evaluate security risks linked to regional instability.

The company cited the progress of a Gaza cease-fire, but said it remained cautious about restoring east–west transits through the Red Sea.

In February, Maersk announced the Gemini Cooperation, a partnership with German container shipping giant Hapag-Lloyd, and introduced new routing plans, including sending vessels around the Cape of Good Hope instead of through the Red Sea and Suez Canal to avoid security risks.

“We currently have no specific timing to change the East–West (Gemini) network to sail through the Red Sea,” Maersk said. “The safety of our crew, our assets, and your cargo remains our top priority.”

The Suez Canal is a critical artery for global shipping, and any rerouting around the Cape of Good Hope adds time and cost to Asia–Europe and Asia–U.S. East Coast voyages.

From The Epoch Times