President Donald Trump has indicated optimism for a trade agreement with India, suggesting it could involve significantly reduced tariffs.
Photo : PTI
US President Donald Trump has hinted at a potential trade deal with India that would involve “much lower tariffs.” Speaking to reporters on Tuesday, he said the two countries “are going to have a deal,” despite the ongoing negotiation deadlock between them.
Speaking to reporters aboad Air Force One, Trump said, “I think we are going to have a deal with India. And that is going to be a different kind of a deal. And that is going to be a different kind of deal. It is going to be a deal where we are able to go in and compete. Right now, India does not accept anybody in. I think India is going to do that, and if they do not, we are going to have a deal for much less tariffs.”
#WATCH | On trade deals with India, US President Donald Trump says, “I think we are going to have a deal with India. And that is going to be a different kind of a deal. It is going to be a deal where we are able to go in and compete. Right now, India does not accept anybody in. I… pic.twitter.com/6c199NGm8B
— ANI (@ANI) July 1, 2025
Delegations from India and the US have been engaged in negotiations for a bilateral trade agreement, despite the ongoing freeze on Trump’s proposed ‘Liberation Day’ tariffs.
Notably, Trump’s 90-day pause on the tariffs is set to end on July 9.
An Indian delegation, headed by chief negotiator Rajesh Agrawal, is actively working to finalise the trade agreement with the US ahead of the July 9 deadline. According to ANI, the team has reportedly extended its stay in Washington to ensure the deal is signed and formalised.
If India and the US fail to reach a deal by July 9, Trump’s 26 percent tariff on Indian goods will take effect, leaving minimal room for further negotiations. Despite ongoing negotiations, trade talks have hit a deadlock following India’s refusal to open its dairy sector to foreign countries.