Trump Signals Trade Pact with India in the Works
US President Donald Trump has once again teased the possibility of a major trade deal with India. Speaking at the White House on Wednesday, Trump indicated that negotiations are underway and that a new agreement may be announced soon.
“We had one (deal) yesterday. We have another one coming up, maybe with India…,” Trump said during a bilateral meeting with Bahrain’s Crown Prince and Prime Minister.
This marks the second time in two days that Trump has mentioned trade discussions with India, following his administration’s recent agreement with Indonesia.
The proposed India-US trade agreement is aimed at enhancing market access for American companies. Trump compared it to the recent US-Indonesia pact, which opened up previously restricted markets to US businesses.
“India is basically working along that same line. We are going to have access to India,” he said, emphasizing market entry as the “biggest part of the deal.”
India Holds Firm on Dairy and Agri Tariffs
Meanwhile, a high-level delegation from India’s Commerce Ministry is currently in Washington for further negotiations. However, New Delhi has maintained a tough stance on reducing tariffs for sensitive sectors like agriculture and dairy.
Historically, India has never offered duty concessions on dairy under any Free Trade Agreement (FTA), citing the need to protect domestic farmers.
Tariff Talks: Below 20% the New Benchmark?
According to a report by Bloomberg, both nations are working to keep tariff levels under 20%, especially for high-demand goods. India is also seeking a better deal than what Indonesia secured to strengthen its regional competitiveness.
Washington has already issued official notices to multiple countries, including India, detailing proposed reciprocal tariff structures expected to take effect from August 1.
Why It Matters for India and the US
This potential deal comes at a time when both economies are looking to deepen bilateral ties. For the US, India represents a fast-growing consumer base and an alternative to China in the global supply chain. For India, the deal could mean greater tech and manufacturing partnerships, foreign investment, and export opportunities.
The agreement is expected to cover sectors such as:
- Pharmaceuticals
- Information Technology
- Automotive components
- Energy and renewables
What’s Next?
Negotiations are ongoing, but both countries appear optimistic. If finalised, this interim trade deal could mark a new chapter in India-US economic relations, especially as Trump seeks to bolster trade accomplishments ahead of the 2026 midterms.
India’s Commerce Ministry has yet to issue an official statement, but insiders suggest that talks are progressing in a “constructive environment.”
Conclusion
The coming days will be critical. If both sides can find common ground on tariff structures and sectoral access, the deal could be announced as early as next month. While the details are still under wraps, the intent is clear: stronger economic ties, greater access, and mutual benefits.