US President Donald Trump has said that Washington is “very close” to finalising a trade deal with India, as both countries continue discussions aimed at enhancing market access and reducing tariffs. His remarks come during a critical phase of ongoing negotiations, with a high-level delegation from India’s Commerce Ministry currently in the United States for a new round of talks.
Trump Emphasises Access and Tariffs
Speaking from the Oval Office during a meeting with Bahrain’s Crown Prince Salman bin Hamad Al Khalifa, Trump said, “We’re very close to a deal with India, where they open it up.” In a separate interview with Real America’s Voice, he reiterated that tariff-based pressure tactics have led to better deals globally and could yield similar results with India.
Trump claimed that sending a letter imposing tariffs often leads to faster agreements, remarking, “The best deal we can make is to send out a letter… you’ll pay 30%, 35%, 25%, 20%. We have some pretty good deals to announce.”
India’s Cautious Approach
While Trump appears optimistic, Indian officials remain firm on taking a measured, interest-driven approach to any agreement. Earlier this month, Commerce Minister Piyush Goyal made it clear that India will not commit to any trade deal based on timelines or political pressure. Instead, New Delhi will proceed only when all terms are thoroughly negotiated and aligned with India’s national interests.
The current trade talks focus on a limited pact aimed at reducing duties, particularly tariffs below 20% on select goods and services. The two sides are working toward creating reciprocal benefits that protect domestic sectors while expanding trade opportunities.
Context: US-Indonesia Deal as a Precedent
Trump’s comments follow the announcement of a new trade agreement with Indonesia, where the US imposed a 19% tariff on all Indonesian imports, replacing an earlier proposal of 32%. In return, American companies will enjoy full, tariff-free access to Indonesian markets.
This assertive trade model reflects Trump’s broader strategy: use tariffs as leverage to extract more favorable terms for US exports. With India, he appears to be following a similar line—suggesting that if progress stalls, higher tariffs could be used as a negotiating tool.
Looking Ahead
The success of a US-India trade deal could mark a significant step forward in bilateral relations, particularly in the areas of technology, agriculture, energy, and manufacturing. However, experts warn that India must remain cautious, ensuring that any concessions do not adversely impact critical domestic sectors.
As negotiations continue, the outcome will depend on the balance between US demands and India’s policy safeguards. A well-structured deal could unlock major trade opportunities, while a rushed or one-sided pact may pose long-term risks to India’s economy.
