Trump signals imminent US-India trade pact with major tariff cuts

US President Donald Trump on July 2 hinted that a trade agreement with India is imminent, promising significantly lower tariffs and greater market access for American companies. His comments come amid intensified negotiations between the two nations, aimed at sealing the deal before a critical July 9 deadline.

“I think we are going to have a deal with India. And it’s going to be a different kind of deal — one where we’re able to go in and compete,” Trump told reporters aboard Air Force One. “Right now, India doesn’t accept anybody in. I think they’re going to do that. And if they do, we’re going to have a deal with much less tariffs.”

The potential breakthrough follows days of extended high-level discussions in Washington, where Indian officials prolonged their visit through June 30 in hopes of resolving long-standing tariff disputes.

US Treasury Secretary Scott Bessent confirmed on July 1 that both countries were closing in on a deal to slash Indian tariffs on American imports. The agreement, if reached, could prevent a steep hike in retaliatory Indian tariffs, currently paused until July 9. Without a deal, India’s reciprocal tariff rate could jump from 10% to as high as 27%.

External Affairs Minister S Jaishankar, speaking at an event in New York earlier this week, acknowledged the complexity of the negotiations. “We are in the middle — hopefully more than the middle — of a very intricate trade negotiation,” he said. “Obviously, my hope would be that we bring it to a successful conclusion. I cannot guarantee it, because there’s another party to that discussion.”

The Trump administration has long pressed India to ease restrictions on US businesses and reduce import tariffs, particularly on sectors like agriculture, medical devices, and technology. A successful agreement could mark a significant milestone in bilateral trade relations and provide relief to both economies amid ongoing global trade tensions.

As the clock ticks down to the July 9 deadline, the world is watching whether Washington and New Delhi can deliver a trade deal that resets the terms of economic engagement between the world’s largest democracies.