Trump teases ‘very big’ trade deal with India after sealing China pact

In a strong signal of shifting global trade dynamics, former US President Donald Trump on June 26 hinted at a potentially sweeping trade agreement with India — days after finalizing a pact with China — raising anticipation ahead of the looming July 9 deadline on suspended tariffs.

Speaking at a public event in Washington DC dubbed the "Big Beautiful Bill" gathering, Trump suggested a deal with India could be imminent. “We just signed with China yesterday. We have one coming up, maybe with India — very big one — where we’re going to open up India,” he declared, without offering specifics.

The remarks come as Washington and New Delhi race to finalize terms on a long-discussed trade agreement before a 90-day tariff freeze — announced in April — lapses. The US had imposed 26% reciprocal tariffs on Indian goods earlier this year, setting the stage for intense backroom negotiations aimed at avoiding a full-blown trade standoff.

“Not every country is going to get a deal. Some will simply get a letter: thank you, and here’s your 25%, 35%, 45% duty,” Trump said, underlining a more selective and transactional approach to trade.

White House spokesperson Karoline Leavitt confirmed that the United States Trade Representative (USTR) had reached out to key partners, including India, urging them to make their best offers ahead of the deadline. “It’s a friendly reminder that the clock is ticking,” she said earlier this month.

Commerce Secretary Howard Lutnick also underscored US intent to rebalance trade flows and bring advanced manufacturing back home, suggesting that growing exports to India could be a key lever. “We’ve found a place that really works for both sides,” Lutnick noted.

From India’s end, officials are signaling openness. Diversifying defense and energy imports from the US — particularly in oil — is increasingly seen as strategically prudent. With India’s oil import dependency touching 90% in April 2025, and refining capacity on the rise, Washington’s crude exports could help reduce the widening goods trade gap.

Though no formal details have emerged yet, the potential deal could mark a turning point in India-US commercial ties, with implications far beyond trade — spanning energy security, tech collaboration, and strategic alignment in the Indo-Pacific.