Trump Signals Imminent Trade Deal with India, Promises Lower Tariffs

US President Donald Trump has indicated that a trade agreement with India is on the horizon, one that would involve significantly reduced tariffs. Speaking to reporters aboard Air Force One on Tuesday, Trump suggested that ongoing negotiations between the two nations are moving toward a breakthrough.

“I think we are going to have a deal with India — and it’s going to be a different kind of deal,” Trump said. “It will be one where we can actually go in and compete. Right now, India doesn’t let anyone in. I think that’s going to change, and if it does, we’re looking at a deal with much lower tariffs.”

Talks over a bilateral trade agreement have stalled in recent weeks, with negotiators working against the clock. Trump’s temporary suspension of his proposed “Liberation Day” tariffs — which include a 26% duty on Indian goods — expires on July 9. Without a deal by then, the tariffs are expected to take effect, sharply impacting Indian exports.

India’s chief trade negotiator Rajesh Agrawal is leading a delegation in Washington, reportedly extending their stay in an effort to reach an agreement before the looming deadline.

The talks have hit a major roadblock over India’s refusal to open its dairy sector to foreign competition — a long-standing U.S. demand. Washington is also pressing for reduced duties on agricultural products like apples, tree nuts, and genetically modified crops.

India, in turn, is seeking greater market access for textiles, gems and jewellery, leather goods, and agricultural products such as shrimp, oilseeds, bananas, and grapes.

While both sides remain publicly committed to resolving the impasse, time is running out. A failure to reach consensus before July 9 could not only trigger steep tariffs but also further strain trade relations between the world’s two largest democracies.