Trump Hints at Major Trade Deal with India Ahead of Tariff Deadline

Trump Hints at Major Trade Deal with India Ahead of Tariff Deadline

WASHINGTON — U.S. President Donald Trump on Friday suggested that a significant trade agreement with India could be on the horizon, as negotiators from both countries work to resolve key differences before a looming tariff deadline next month.

Speaking shortly after announcing the conclusion of a trade agreement with China, Trump indicated that Washington was now turning its attention to New Delhi. “A very big one [trade deal] could be coming with India,” the president said, without offering specifics about the scope or timeline of the potential agreement.

The remarks come at a crucial juncture in U.S.-India trade relations. Earlier this year, on April 2, the U.S. imposed 26 percent reciprocal tariffs on a range of Indian goods, citing concerns over market access and trade imbalances. However, in an effort to create space for negotiations, Washington also introduced a 90-day pause on those tariffs — a grace period that is set to expire on July 9.

Both sides have since been engaged in high-level talks aimed at resolving a host of long-standing trade irritants. These include U.S. demands for greater access to India’s agricultural and medical device markets, as well as India’s concerns over tariffs on steel and aluminum and the restoration of its preferential trade status under the U.S. Generalized System of Preferences (GSP) program.

Although Trump did not reveal whether the talks had reached a breakthrough, his optimistic tone is being seen as a positive signal by analysts tracking the bilateral relationship.

“This is a critical window,” said a trade expert familiar with the negotiations. “With the tariff pause expiring on July 9, any deal — big or small — will require intense engagement in the coming days. Trump’s comment may indicate that both sides are inching closer to an agreement.”

India and the United States have historically enjoyed strong economic ties, but relations have been tested in recent years by a series of trade disputes. However, both governments have emphasized the importance of resolving their differences and expanding cooperation, particularly in the face of global economic uncertainty.

Officials from the Indian Ministry of Commerce and the U.S. Trade Representative’s office are expected to continue talks in the coming week, with hopes of reaching a mutually acceptable resolution before the tariff suspension is lifted. A deal before that deadline could help avoid a new round of tariffs and demonstrate renewed strength in the U.S.-India strategic partnership.