Is Trump Hinting That India-US Trade Deal is Near?
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Synopsis
US President Donald Trump has hinted that a trade deal with India is on the horizon, potentially concluding soon. As negotiations continue, both nations aim for a mutually beneficial agreement that could reshape economic ties. With developments unfolding rapidly, this situation merits close attention.
Key Takeaways
- Trump suggests India-US trade deal is imminent.
- Negotiations include key issues like agriculture and tariffs.
- Indonesia deal may serve as a model for India agreement.
- Potential tariffs on Russia could impact India.
- Trade talks have been ongoing since February.
New York, July 17 (NationPress) US President Donald Trump has suggested that the US is “very close” to finalizing a trade agreement with India, which could be concluded soon.
“We’re very close to a deal with India, where they will open it up” to US imports, he stated on Wednesday.
In a separate discussion with reporters, he highlighted the trade agreement with Indonesia announced on Tuesday, saying, “We have another one coming up, possibly with India. I’m not sure. We’re in negotiations.”
The Indian negotiating team, led by Rajesh Agrawal, the special secretary in the Commerce Department, arrived in Washington on Monday and is currently engaging in discussions with US officials to finalize the deal.
As reported by Politico, the forthcoming announcement “is anticipated to be merely the initial phase of a trade agreement, with a more extensive and comprehensive agreement expected to follow in the fall.”
This will lead to a more detailed bilateral trade agreement.
Trump spoke to reporters alongside Bahrain’s Crown Prince Salman bin Hamad Al Khalifa before their meeting, emphasizing that trade and investments would be key topics.
He is actively seeking international investments in the US, boasting about the trillions he is working to bring in.
Al Khalifa remarked, “We’re very pleased to announce $17 billion worth of deals that are heading to the United States.”
Trump has not sent India the tariff notice that was dispatched to several countries, which imposed tariffs as high as 35 percent on pure trade considerations if they did not finalize a deal by August 1.
This could indicate his expectation for an India deal to be completed soon.
On Tuesday, Trump mentioned that India is working on a trade deal similar to the one reached with Indonesia.
He noted that under the Indonesia agreement, Jakarta will not impose tariffs on imports from the US, while the US will apply a 19 percent tariff on Indonesian exports.
Negotiations with India began as early as February, and both Trump and US officials have repeatedly suggested that a trade agreement was imminent, yet it has not materialized so far.
Following Vice President JD Vance’s visit to India in April, US Commerce Secretary Scott Bessent stated that India would be among the first to sign a trade deal, which might occur in early May.
In June, after a conversation with Prime Minister Narendra Modi, Trump said, “I think Modi is a fantastic man. I spoke to him last night. We’re going to make a trade deal with Modi of India.”
Bessent had commented on the possibility of an early trade deal, noting that India has “fewer non-tariff trade barriers, obviously no currency manipulation, very, very little government subsidies, making it much easier to reach a deal with the Indians.”
However, discussions have been complicated by issues related to agriculture, access for Indian professionals to the US, and intellectual property rights.
Two additional developments are casting a shadow over the trade agreement.
Trump has indicated he would impose a secondary tariff of 100 percent on countries purchasing energy from Russia if Moscow does not achieve peace with Ukraine by early September.
Although aimed at Russia to tighten its financial pipeline and add pressure for a peace deal, the punitive tariff would also affect India.
Simultaneously, he has discouraged Republican senators from advancing a bill proposing a 500 percent tariff on those purchasing Russian energy.
Another concern is a ten percent tariff Trump has threatened against members of the BRICS he has labeled “anti-American.”
(Arul Louis can be contacted at arul.l@ians.in)
Point of View
It's vital to recognize the importance of the India-US trade talks. This agreement holds the potential to significantly impact both economies. We support fair negotiations that benefit both nations while ensuring transparency and mutual respect.
NationPress
17/07/2025
Frequently Asked Questions
What is the current status of the India-US trade deal?
US President Trump has indicated that negotiations are ongoing and that a trade deal is “very close” to being finalized.
What are the key issues hindering the trade negotiations?
Discussions have been complicated by agriculture, access for Indian professionals to the US, and intellectual property rights.
What are the implications of the tariffs mentioned by Trump?
Trump has suggested tariffs on countries buying energy from Russia, which could also affect India if negotiations do not progress.
How does the trade deal with Indonesia relate to the India deal?
Trump has mentioned that India is working on a deal similar to the one reached with Indonesia, which features no tariffs on US imports.
When might the trade deal with India be finalized?
While no exact date is provided, Trump has expressed optimism that the deal could be completed soon.
