In a major development in global trade diplomacy, US President Donald Trump on Tuesday expressed strong optimism regarding ongoing tariff negotiations between the United States and India. Trump told reporters outside the White House that the trade talks were "coming along great" and hinted that a final agreement may be imminent.
“India tariff talks are going great. I think we’ll have a deal with India,” Trump stated, referring to Indian Prime Minister Narendra Modi’s recent visit to Washington.
This marks a renewed phase of dialogue between the two major democracies, following recent reciprocal tariffs imposed by the US on several nations, including India. President Trump had earlier paused those tariffs for 90 days, with a deadline set for July 9 — except in the case of China and Hong Kong, which continue to face full duties.
Significant Progress Confirmed by US Treasury
US Treasury Secretary Scott Bessent backed the President’s optimism, revealing that discussions between US Vice President JD Vance and Prime Minister Modi during their recent meeting in New Delhi had resulted in "substantial progress".
“A country like India, which has the posted and ready tariffs, it’s much easier to negotiate with them,” Bessent commented.
He further noted that formal announcements related to the India deal could be expected soon.
Deal Close, Says Commerce Secretary
Meanwhile, US Commerce Secretary Howard Lutnick indicated that a deal with an unnamed foreign power was already finalized and awaiting domestic approvals. While Lutnick did not disclose the country’s name, insiders strongly believe he was referring to India.
“I have a deal done ... but I need to wait for their prime minister and their parliament to give its approval,” Lutnick told CNBC.
Strategic Interests for Both Nations
India, which is the largest trading partner of the United States in the South Asian region, appears keen to formalize a long-term agreement. According to officials cited by Reuters, New Delhi is willing to offer Washington more favorable terms than it might extend to Britain or the European Union. However, India reportedly seeks assurance that it can become a major supplier to the American market in sectors left vacant by China.
Context: The Reciprocal Tariffs
On April 2, President Trump announced wide-ranging "reciprocal tariffs" on dozens of countries in an effort to balance trade imbalances. These included a 10% baseline tariff and additional 25% duties on imports of steel, aluminum, and auto parts. However, on April 9, Trump issued a 90-day suspension for most nations — excluding China and Hong Kong — to allow trade negotiations to progress.
The suspended tariffs are set to return unless formal agreements are struck before the July 9 deadline.
Political Implications and Diplomatic Timing
The announcement of potential progress in the India-US trade deal comes at a politically sensitive time, with both nations navigating critical economic reforms. The prospective agreement could bolster economic ties and strengthen diplomatic relations, especially amid growing concerns about global supply chains and China's trade dominance.
Prime Minister Modi's government, keen on securing increased access to US markets and investments, sees the trade deal as a cornerstone of India’s long-term economic ambitions.
Conclusion:
As the July deadline looms, both Washington and New Delhi appear eager to finalize a mutually beneficial agreement. While hurdles remain, the recent tone from the White House suggests that a breakthrough is likely — potentially reshaping India-US trade relations for the years to come.