‘We’re going to have a deal for much less tariffs’: Donald Trump says India US trade pact to happen soon

US President Donald Trump on Tuesday said that the trade deal with India will have “much less tariffs” amid the ongoing deadlock between the two countries. He also reiterated his criticism of India being a difficult market to crack. 

Negotiators from both India and the US have been trying to arrive at a bilateral trade agreement between the two countries amid the 90-day pause on Trump’s ‘Liberation Day’ tariffs. The 90-day pause is set to end on July 9. 

“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,” Trump was quoted as saying by ANI.

Meanwhile, there is no clarity on how to proceed with negotiations between the countries, Business Today reported, citing sources. The plan to levy reciprocal tariffs by the US will kick in from July 9 onwards. The US plans to impose a 26% tariff on Indian goods, including a 10% baseline tariff. 

A possible solution could be to cover some goods and services, or only certain goods of common interest, such as labour-intensive goods, including garments, leather, gems, and jewellery from India, while keeping other goods out of the purview of negotiations. 

“As of now, there remains no clarity on how to proceed on negotiations. Both countries have certain interests that they are keen on protecting. For India, it remains dairy and agriculture, which are sensitive issues. The US is interested in full access to these sectors,” a source said. 

Export orders to India from the US continue and remain unaffected as of now. “As of now, exporters are not facing any challenge as of now. There is a rush of shipments in most sectors, except in steel and aluminium, where tariffs are already high at 50%,” as per an industry source.