US President Donald Trump announced on Monday that the United States is close to finalizing a trade deal with India, emphasizing progress in negotiations aimed at reducing tariffs and enhancing market access. Speaking at the White House ahead of a bilateral dinner with Israeli Prime Minister Benjamin Netanyahu, Trump said, “We’ve made a deal with the United Kingdom, we’ve made a deal with China… We’re close to making a deal with India.” He noted that letters detailing new tariffs were sent to 13 countries—Bangladesh, Bosnia and Herzegovina, Cambodia, Indonesia, Japan, Kazakhstan, Laos, Malaysia, Serbia, South Africa, South Korea, Thailand, and Tunisia—warning of duties effective August 1, 2025, unless agreements are reached.
The US-India trade talks, intensified after Trump’s April 2 announcement of a 26% reciprocal tariff (later reduced to 10% with a 90-day pause until July 9, now extended to August 1), focus on lowering India’s trade barriers, particularly for US agricultural goods like genetically modified corn and soy. India resists these demands, citing food security and farmer livelihoods, while pushing for tariff concessions on labor-intensive exports like garments and footwear to boost bilateral trade to $500 billion by 2030. Indian negotiators, led by Commerce Minister Piyush Goyal, extended their Washington stay last week, with a “forward most-favoured-nation” clause proposed to ensure the US receives India’s best tariff terms.
Trump also reiterated his claim that trade leverage helped de-escalate India-Pakistan tensions following India’s Operation Sindoor on May 7, a counterstrike to the April 22 Pahalgam terror attack that killed 26. He asserted that threatening to halt trade with both nations, both nuclear powers, prevented a potential “nuclear war.” India, however, maintains that its military response forced Pakistan to cease hostilities by May 10, with no mention of trade in bilateral talks.
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The trade deal, described as a “mini agreement” by sources, excludes sensitive sectors like dairy and agriculture for now, with a broader free trade agreement targeted for fall 2025. White House officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, expressed optimism, with Bessent noting India’s “very good” proposals. Posts on X, such as from @TimesAlgebraIND and @MeghUpdates, hailed the deal as a “historic moment,” emphasizing the strategic US-India alliance in the Asia-Pacific.
Meanwhile, Trump’s tariff strategy, including 25% duties on Japan and South Korea, aims to drive companies to the US, though critics warn of disrupted supply chains and higher prices. The administration’s approach, balancing deals with allies like India and Vietnam against steep tariffs on others, underscores Trump’s aggressive trade agenda.
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