WASHINGTON, July 16: U.S. President Donald Trump has said that trade negotiations between India and the United States are progressing well, raising expectations that the much-awaited interim agreement could soon be concluded.
Speaking to reporters, Trump compared the developing India deal to Washington’s recently signed trade agreement with Indonesia, which, he said, granted American firms “full access” to the Southeast Asian market.
“We made a deal with Indonesia… we have full access into Indonesia,” Trump said. “India is basically working along that same line. We are going to have access to India.”
The proposed agreement aims to ease tariffs on both sides, keeping most duties under the 20 percent threshold. While specific terms are still under discussion, Trump hinted that the pact with India could be among several new trade deals his administration plans to roll out in the coming weeks.
The U.S. has already circulated letters to several nations outlining reciprocal tariff rates set to take effect on August 1. These would apply unless pending negotiations, including with India, reach resolution.
India, however, has adopted a cautious approach. Commerce Minister Piyush Goyal made it clear earlier this month that New Delhi will not sign any trade agreement under pressure or to meet external deadlines.
“India does not enter into any trade agreement based on deadlines. We will accept a deal only when it is fully finalised, properly concluded, and in the national interest,” Goyal stated.
An Indian commerce ministry delegation is currently in Washington to hold another round of negotiations. Officials familiar with the talks say sticking points remain, especially on U.S. demands for market access in India’s sensitive agriculture and dairy sectors—areas where India has not granted concessions in any of its free trade agreements to date.
New Delhi is also pushing for the removal of steep tariffs imposed by the U.S. on Indian steel and aluminium exports (currently at 50 percent), as well as duties on automobiles (25 percent).
On April 2, the Trump administration announced a series of tariff hikes on multiple countries, including India. Those measures were initially postponed for 90 days until July 9, and later extended to August 1 to allow more time for negotiations.
As the clock ticks down, the outcome of the India-U.S. trade discussions may have far-reaching implications—not just for bilateral commerce, but also for broader strategic cooperation between the two nations.
