Last Updated:
Donald Trump hinted at an upcoming “very big” trade deal with India during his speech at the Big Beautiful Bill event. This comes soon after the US signed a trade deal with China.
US President Donald Trump and India’s Prime Minister Narendra Modi shake hands during a news conference (File photo/AP)
Donald Trump on Friday hinted at a “very big” deal with India while he spoke at the Big Beautiful Bill event. Soon after signing a trade deal with China, the US President said his country is having some great deals.
“We are having some great deals. We have one coming up, maybe with India. Very big one. Where we’re going to open up India, in the China deal, we are starting to open up China,” he said.
Meanwhile, an Indian team, headed by chief negotiator Rajesh Agarwal, also the special secretary in the Department of Commerce, arrived in Washington for the next round of trade talks with their US counterparts, news agency PTI quoted an official as saying.
It was also learnt that both countries are trying to finalise the pact before July 9.
The high tariffs, announced by the US on April 2, were suspended by the Trump administration till July 9.
INDIA-US TRADE TIES
On April 2, the US imposed an additional 26 per cent reciprocal tariff on Indian goods but suspended it for 90 days. However, the 10 per cent baseline tariff imposed by America remains in place.
India is seeking full exemption from the additional 26 per cent tariff.
Agriculture and dairy sectors are difficult and challenging areas for India to give duty concessions to the US. India has not opened up dairy in any of its free trade pacts signed so far.
The US wants duty concessions on certain industrial goods, automobiles – especially electric vehicles, wines, petrochemical products, dairy, and agricultural items like apples, tree nuts, and genetically modified crops.
India is seeking duty concessions for labour-intensive sectors like textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas in the proposed trade pact.
When asked if the July 9 deadline would not be extended, a source told PTI that the tariffs would come to the April 2 level (26 per cent in the case of India).
The two countries are looking to conclude talks for the first tranche of the proposed bilateral trade agreement (BTA) by fall (September-October) this year. The pact is aimed at more than doubling bilateral trade to USD 500 billion by 2030 from the current USD 191 billion.
Before the first tranche, they are trying for an interim trade pact.
India’s exports to the United States rose to $17.25 billion in April-May, up from $14.17 billion a year earlier, suggesting the US tariff hikes averaging 10 per cent in early April had a limited impact.
INDIA-US TRADE DEALS: PREVIOUS ANNOUNCEMENTS
Earlier this month, while speaking at the US-India Strategic Partnership Forum, US Secretary of Commerce, Howard Lutnick, said that a trade deal between India and the United States could be finalised soon, with both countries finding common ground that suits their interests.
“I think to be in a very, very good place, and you should expect a deal between the United States and India in the not-too-distant future, because I think we found a place that really works for both countries,” Lutnick had said.
When asked if he was hopeful about the outcome, Lutnick said he was “very optimistic,” and added, “It could be sort of the way I come across.”
On June 10, Union Commerce and Industry Minister Piyush Goyal said that India and the US were in the process of negotiating a fair and equitable trade agreement that will benefit both economies.
Addressing a press conference over the India-US trade deal and future trade agreement with the European Union, Piyush Goyal had said, “PM Narendra Modi and US President Trump met in February 2025. Both our leaders have decided to enter into a bilateral trade agreement which will be mutually beneficial for both the economies, businesses on both sides and the people of both countries.”
“We are negotiating to make a nice, fair, equitable and balanced agreement to promote business,” Goyal had said.
He had also stressed that both America and India are “very close friends, allies and strategic partners” and that the trade deal is an opportunity to expand bilateral trade and strengthen the partnership between the two nations.
ALSO READ | ‘Too Heavy, Dangerous’: Donald Trump Says Iran Didn’t Move Uranium Before US Strikes
Vani Mehrotra is the Deputy News Editor at News18.com. She has nearly 10 years of experience in both national and international news and has previously worked on multiple desks.
Vani Mehrotra is the Deputy News Editor at News18.com. She has nearly 10 years of experience in both national and international news and has previously worked on multiple desks.
- First Published: