Washington, july 2
United States President Donald Trump confirmed that a trade deal between the US and India, with “much less tariffs” will soon be announced.
“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,” Donald Trump said, while speaking with reporters on board Air Force One.
Both countries face the looming return of suspended 26 per cent reciprocal tariffs. Imposed on April 2, it was paused for 90 days, and without another agreement, it will likely resume automatically.
The President’s comments come hours after US Treasury Secretary Scott Bessent said on Tuesday that the US and India are nearing a deal to lower tariffs on American imports to the South Asian country and to help India avoid levies imposed by the Trump administration, which will rise sharply next week. Notably, earlier this week, External Affairs Minister S Jaishankar at an event in New York had said, “We are in the middle — hopefully more than the middle — of a very intricate trade negotiation.”
A team of Indian officials visited Washington last week in a push to finalise an agreement before the tariff pause expires on July 9. Special Secretary Rajesh Agarwal, who is heading the Indian delegation, has extended his stay by another day to try to break the impasse.
The India–US tariff issue stems from longstanding trade tensions, particularly around market access, high import duties, and trade imbalances.
