Washington: US President Donald Trump on Tuesday (local time) reiterated that India and the United States are nearing the finalisation of a trade agreement that will feature “much less tariffs,” which will give both countries a chance to compete globally.
We are going to have a deal: Trump
Speaking to reporters aboard Air Force One, Trump said, “I think we are going to have a deal with India. And that is going to be a different kind of a deal. It is going to be a deal where we are able to go in and compete. Right now, India does not accept anybody in. I think India is going to do that, and if they do that, we are going to have a deal for much less tariffs.”
India-US trade talks
India and the United States are currently engaged in intense discussions to conclude a Bilateral Trade Agreement (BTA) ahead of the crucial July 9 deadline, which marks the end of a 90-day freeze on tariff escalations.
Amid these high-stakes talks, government sources revealed on Monday that India has adopted a firmer stance on agricultural matters as high-stakes trade negotiations with the United States reach a pivotal moment.
The Indian delegation, led by Chief Negotiator Rajesh Agrawal, has extended its stay in Washington, as reported by ANI earlier. The two negotiations were scheduled on Thursday and Friday, but have been extended as both nations work urgently to finalise an interim trade agreement before a crucial July 9 deadline.
The extended negotiations come as both countries face the looming return of suspended 26% reciprocal tariffs. These punitive measures, imposed initially during the Trump administration on April 2, were temporarily suspended for 90 days but will automatically resume if no agreement is reached.
“The failure of these trade discussions would trigger the immediate reimplementation of the 26% tariff structure,” warned a senior official.
India’s tougher stance underscores the politically and economically sensitive nature of its agricultural sector. With the majority of the country’s farmers operating on small, subsistence-level landholdings, offering concessions in trade negotiations is particularly complex. Any perceived compromise could have significant domestic repercussions, both for rural livelihoods and political stability.
What does the US want
The United States is pushing for reduced duties on agricultural products, including apples, tree nuts, and genetically modified crops. However, India has never opened its dairy sector to foreign competition in any previous free trade agreement — a precedent it appears reluctant to break even under US pressure.
At the same time, India is pushing for preferential access for its labour-intensive exports, including textiles and garments, gems and jewellery, leather goods, as well as agricultural products such as shrimp, oilseeds, grapes, and bananas.
Beyond the immediate interim agreement, both nations are working toward a comprehensive bilateral trade agreement (BTA) with the first phase targeted for completion by fall 2024. The ultimate goal is ambitious: more than doubling bilateral trade from the current $191 billion to $500 billion by 2030.
