U.S. President Donald Trump has hinted at a “very big” trade deal with India following a pact with China, stating the United States is “having some great deals” and that one could soon materialize with India. He suggested Washington may reduce tariffs and “open up India,” but provided no specifics.
Despite optimism, high-stakes negotiations continue, with the U.S. threatening reciprocal tariffs of up to 26% spanning sectors like steel, automotive parts, and agriculture if no agreement comes by the self-imposed July 9 deadline. Indian trade officials remain cautious, protecting farmer interests and resisting large-scale market liberalization.
FT reports indicate an interim deal could be finalized this week to stave off immediate tariff measures, covering agricultural exports and energy imports, with a broader engagement expected in the autumn. India has already offered tariff cuts on nuts, berries, dairy, and whiskey, and signaled readiness to expand U.S. energy and defense imports.
The outcome hinges on balancing U.S. demands for reciprocity with India’s domestic sensitivities, especially regarding its farmers. Prime Minister Modi aims to steer the negotiations toward mutual benefit while preserving political stability. As both countries approach the deadline, diplomatic efforts intensify to prevent a full-blown trade skirmish.
