US President Donald Trump Hints At Imminent US-India Trade Deal As Global Tariff Tensions Rise

US President Donald Trump has suggested that a trade agreement with India may soon be concluded, stating the two nations are ‘very close’ to reaching a deal.

“We’re very close to a deal with India, where they open it up” to American imports, he remarked on Wednesday during an interaction with journalists.

In the same briefing, Trump referred to a trade pact announced with Indonesia the previous day and added, “We have another one coming up, maybe with India. I don’t know. We’re in negotiation.”

Talks are currently underway in Washington, where a delegation led by Rajesh Agrawal, Special Secretary in India’s Commerce Department, is working with US officials to finalise the agreement.

As per ‘Politico’, the expected announcement would mark only the first phase of a broader trade pact, with a more comprehensive bilateral deal anticipated later in the year.

Trump made these remarks with Bahrain’s Crown Prince Salman bin Hamad Al Khalifa by his side, ahead of their meeting that was likely to focus on trade and investment.

Highlighting international interest in the US, Trump boasted of attracting trillions in foreign investments.

Crown Prince Al Khalifa echoed the sentiment, saying, “We’re very happy to be announcing $17 billion worth of deals that are coming to the United States.”

Unlike several other nations, India has not received a formal tariff warning from the US.

Trump has previously threatened up to 35 per cent tariffs on countries failing to conclude deals by 1 August, suggesting he is optimistic about sealing terms with India soon.

Comparisons to Indonesia Deal

On Tuesday, Trump compared the ongoing discussions with India to the deal with Indonesia, under which Jakarta has agreed to zero tariffs on US imports, while the US will impose a 19 per cent tariff on goods from Indonesia.

Negotiations with India reportedly began in February. Despite repeated assertions by Trump and his officials that a deal was imminent, nothing has been finalised so far.

Following Vice President JD Vance’s visit to India in April, US Commerce Secretary Scott Bessent noted India was likely to be among the first to secure a trade agreement, potentially by early May.

In June, Trump said he had spoken to Prime Minister Narendra Modi and expressed confidence.

“I think Modi is a fantastic man. I spoke to him last night. We’re going to make a trade deal with Modi of India,” he noted.

Bessent previously remarked that India’s minimal non-tariff barriers, absence of currency manipulation, and limited state subsidies made it comparatively easier to negotiate with.

However, challenges over agriculture, US access for Indian professionals, and intellectual property rights have reportedly hindered progress.

Two global developments are also affecting the negotiations.

Trump has vowed to impose a 100 per cent secondary tariff on countries importing energy from Russia unless Moscow agrees to peace in Ukraine by early September—a move that could affect India.

Simultaneously, he has discouraged Republican lawmakers from advancing legislation proposing a 500 per cent tariff on nations purchasing Russian energy.

Further complicating matters, Trump has also floated the idea of a 10 per cent tariff on BRICS nations, labelling them ‘anti-American’.

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