- By Supratik Das
- Thu, 17 Jul 2025 07:53 AM (IST)
- Source:JND
India-US trade deal: US President Donald Trump has once again hinted that an eagerly awaited interim trade agreement between India and the US may be sealed soon, indicating that the talks are making good progress. Speaking during a bilateral meeting with Bahrain’s Crown Prince and Prime Minister at the White House, Trump hinted that a fresh trade pact with India could be the next major announcement from his administration.
"... We've brought in over $100 billion. The tariffs haven't kicked in that much, other than automobiles and Steel... August 1st is when a very substantial money comes into our country. We've made deals with a lot of places. We had one yesterday... We have another one (deal) coming up, maybe with India... We're in negotiation. When I send out a letter, that's a deal... The best deal we can make is to send out a letter, and the letter says that you'll pay 30 per cent, 35 per cent, 25 per cent, 20 per cent... We have some pretty good deals to announce... We're very close to a deal with India where they open it up..." Trump said, indicating that talks have moved into the final stages.
Talks Focus On Market Access and Tariffs
Trump's recent remarks follow a new round of talks underway in Washington, in which an Indian Commerce Ministry team is discussing contentious issues with American counterparts. The suggested agreement is likely to provide American businesses more access to India's market, much like Washington's new trade pact with Indonesia. The US-Indonesia agreement reduced tariffs and featured large-scale US exports of energy, agricultural, and aviation products. "India is pretty much on the same track. We're going to get access to India," Trump said in comparing the two agreements.
India has thus far held off on US pressure for greater duty concessions in sensitive areas such as agriculture and dairy. India has never made tariff cuts on dairy in any free trade agreement. The US seeks lower import duties on industrial items, automobiles (including electric vehicles), wines, petrochemicals, and agricultural products such as dairy, apples, and tree nuts. On the other hand, India is pushing for tariff relief for its labour-intensive products like textiles, gems and jewellery, leather items, garments, shrimp, and farm products like oil seeds and bananas.
Deadline Looms Near
A further 16 per cent tit-for-tat tariff will be imposed on Indian products from August 1 if no deal is done, over and above a 10 per cent initial tariff. Nevertheless, negotiators from both sides remain optimistic that they will conclude an interim agreement or provide an extension before the deadline. India is also seeking the elimination of high US tariffs on steel and aluminium (50 per cent currently) and cars (25 per cent), while retaining its WTO right to impose retaliatory duties if necessary.
Defying the continued tariff disagreements, India's trade goods exports to the US increased 21.78 per cent to USD 17.25 billion in April-May this financial year. Imports from the US increased 25.8 per cent to USD 8.87 billion over the same period, symbolizing the increasing significance of the bilateral trade relationship. The Commerce Minister Piyush Goyal had recently reaffirmed that India would sign a trade deal only when it completely safeguards national interests. "India doesn't make trade deals on timelines. We will sign only when it is rightly concluded and in the interest of India," Goyal had stated earlier this month.
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Both countries are hoping to conclude negotiations for the initial phase of the intended bilateral trade agreement (BTA) by September-October this year, with the expectation that an interim deal will avoid new tariffs and enhance economic relations.
