The United States and India may be on the brink of a new tariff deal, according to US President Donald Trump, who said on Thursday that both sides are “very close” to an agreement.
His comments come as Indian officials meet with their American counterparts in Washington this week to finalize the terms of a proposed bilateral trade agreement. Talks began Monday and are expected to wrap up by July 17.
“If it happens, it’ll be soon,” Trump said in an interview with Real America’s Voice. The former president has hinted at a breakthrough for two days now, telling reporters on Wednesday that another deal was coming “maybe.”
The urgency stems from an August 1 deadline. If the two countries fail to reach a deal by then, Indian exports to the US could face a total of 26 percent in tariffs—10 percent already in place, plus a pending 16 percent reciprocal levy.
India’s commerce ministry has not confirmed whether the deal will be signed by that date. Earlier this month, Commerce Minister Piyush Goyal told reporters that New Delhi doesn’t commit to trade agreements based on deadlines. “India will only accept a trade deal that is properly concluded and in the national interest,” Goyal said.
This week’s remarks from Trump suggest a potential easing of trade tensions, following a separate deal the US finalized with Indonesia. In that agreement, the US reduced a 32 percent tariff to 19 percent.
“We made a terrific deal,” Trump said of Indonesia. “He [the Indonesian President] opened up the entire country to trade with the United States. We were not allowed to go in and trade. I think something similar would happen with India, and we have a couple of others.”
So, what does Trump actually want from India? He didn’t say, but his comments suggest a trade deal could be coming before the August 1 deadline.
This isn’t a new conversation—the U.S. and India have been arguing over tariffs and market access for years, repeatedly hitting a wall on everything from farming to digital trade.
With both governments needing a political victory, there’s a real chance they’ll finally hash something out. For now, negotiators in Washington are racing against the clock with less than two weeks to go.
