US President Donald Trump announced that India is working on a trade agreement modelled after the recent US-Indonesia deal, aiming to enhance American access to the Indian market.
India Pursuing Similar Trade Terms as Indonesia Deal
US President Trump told reporters in Washington on Tuesday that India is negotiating a deal ‘along the same line’ as the one finalised with Indonesia.
“India basically is working along that same line,” US President Trump said. “We’re going to have access to India.”
Under the deal with Jakarta, the US will impose a 19% tariff on Indonesian imports, while US exports to Indonesia will face zero tariffs.
The US President did not clarify whether the India deal would mirror these exact terms, which could be difficult for New Delhi to accept.
US Sets August 1 Deadline for Deal or Tariffs
President Trump has set an August 1 deadline for trade negotiations, warning several nations, including India and the European Union, that failure to reach a deal could result in punitive tariffs of up to 35%.
He has already sent formal letters to these countries, including India, threatening trade penalties if agreements are not concluded.
If India agrees to a structure similar to the Indonesia deal, it could face a 19% tariff on its exports to the US, while American goods enter India tariff-free.
Putin Could Agree to Peace Deal Within 50 Days, Says Trump
Turning to foreign policy, President Trump said Russian President Vladimir Putin could agree to a ceasefire with Ukraine within the next 50 days.
Asked about a reported September 2 deadline, the US President said, “I don’t think 50 days is very long, and it could be sooner than that.”
The US President indicated that a peace deal would protect nations like India from a proposed 100% secondary tariff on countries that continue importing Russian energy.
President Trump announced on Tuesday that he was ramping up pressure on Moscow for refusing to end its war in Ukraine.
As part of this strategy, he proposed a 100% punitive tariff on countries buying energy from Russia, aiming to squeeze Moscow’s revenue and force diplomatic concessions.
This measure would also affect nations like India, which have continued purchasing Russian oil and gas.
Meanwhile, Republican Senate leader John Thune confirmed that he was delaying a bill proposing a 500% tariff on Russian energy importers.
The US President had earlier expressed doubts about the need for such legislation, suggesting he already possessed the authority to enforce sanctions.
Defending his trade strategy, President Trump said tariffs are a powerful tool to open foreign markets to American businesses.
“You have to understand, we had no access to any of these countries. Our people couldn’t go in. And now we’re getting access because of what we’re doing with the tariffs,” he said.
He also emphasised Indonesia’s importance as a source of essential raw materials, including high-quality copper and rare earth minerals.
Also Read: US President Trump Says Ukraine ‘Shouldn’t Target Moscow’; Rejects Long-Range Missile Support
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