The US is working toward an interim trade deal with India that may reduce its proposed tariffs to below 20%, people familiar with the matter said, putting the South Asian nation in a favorable position against its peers in the region.

If finalized, India would join a small group of nations securing trade relief from Washington at a time when Trump is pressuring dozens of partners with tariff spikes.

India's the second largest shoe producer after China, and its absence from Trump's tariff letters so far means he's still considering trade terms.