US President Signals 'Very Big' Trade Deal with India Imminent
US President Donald Trump announced that a "very big" trade deal with India is forthcoming, suggesting significant progress in long-standing negotiations. His remarks came as an Indian delegation, led by chief negotiator Rajesh Agarwal, arrived in Washington for another round of talks. The two nations are reportedly trying to finalize an interim pact by July 9. The deal is expected to address contentious issues like tariffs on agricultural products, dairy, and industrial goods, aiming to substantially boost bilateral trade.
Unpacked:
Key issues include US demands for India to reduce or eliminate tariffs and non-tariff barriers on American goods—especially agricultural products, dairy, automobiles, and medical devices. India seeks greater and preferential market access for its exports. Both sides aim for a mutually beneficial agreement but differ on the scope and pace of tariff reductions.
The urgency stems from the Trump administration's plan to implement country-specific reciprocal tariffs on imports from 57 nations, including India, beginning July 9. Finalizing an interim deal before then could exempt India from these tariffs and demonstrate progress in broader trade negotiations.
The US and India are major trading partners. In 2024, bilateral trade in goods and services exceeded $210 billion, with India enjoying a $41.18 billion merchandise trade surplus. Both sides have set a goal to double bilateral trade to $500 billion by 2030, reflecting the strategic and economic importance of the relationship.
For the US, the deal could mean expanded market access for American goods, reduced trade deficits, and stronger economic ties. India stands to gain greater access to the US market, enhanced investment opportunities, and strengthened strategic partnership. Both countries anticipate a boost in bilateral trade and closer overall relations.