US President Donald Trump has suggested that India and the United States are close to finalizing a trade deal. He believes this agreement will lower tariffs and promote fair competition between the two countries.
Trump Signals Confidence in Talks
While speaking to reporters aboard Air Force One on Tuesday, 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.”
Thus, Trump expressed confidence that both sides will reach an agreement.
Deadline for Tariff Pause Approaches
Currently, both nations are racing against the clock. Trump’s 90-day pause on the so-called ‘Liberation Day’ tariffs will expire on July 9. If the deal isn’t signed by then, a 26% tariff on Indian goods will kick in. As a result, the window for fresh negotiations will shrink significantly.
Indian Delegation Extends Stay in Washington
Meanwhile, India’s trade team, led by chief negotiator Rajesh Agrawal, is still in Washington. According to reports from ANI, the delegation has extended its stay to continue working on the deal. Their goal is to reach a final agreement before the fast-approaching deadline.
Talks Stuck Over Dairy and Agriculture
However, the discussions have reached a stalemate. The main obstacle is India’s refusal to open its dairy sector to foreign products. Notably, India has never allowed any trade partner to access this sensitive area.
In addition, the U.S. is demanding reduced duties on items like apples, tree nuts, and genetically modified crops.
On the other hand, India is seeking better access to U.S. markets for its textiles, garments, gems, leather goods, and farm products such as shrimp, oilseeds, bananas, and grapes.
White House Hints at Progress
Despite the deadlock, both sides remain hopeful. Recently, the White House stated, “President Trump-PM Modi ties strong, US-India trade deal announcement soon.”
Therefore, although several issues remain unresolved, leaders from both countries seem eager to finalize the agreement.
