Trump: 'US Close to Major Deal with India'

India, US Close to Finalizing Trade Deal as Trump Signals Major Breakthrough

Washington DC – The United States and India are nearing a significant bilateral trade agreement, President Donald Trump announced on Monday, signaling a major development even as his administration warned 14 other countries of potential tariff hikes.

“We’ve made a deal with the United Kingdom, we’ve made a deal with China, and we’re close to making a deal with India,” Trump said during a meeting with Israeli Prime Minister Benjamin Netanyahu.

The two countries have been engaged in intensive trade negotiations, especially after Washington extended its reciprocal tariffs deadline from July 9 to August 1, offering a brief window to seal the agreement.

A key Indian negotiation team, led by Special Secretary Rajesh Agrawal, recently concluded meetings with officials at the Office of the US Trade Representative (USTR). Talks have reportedly resulted in a draft “agreement in principle”, though it may not yet be legally binding.

“I think they’ve essentially wrapped up what could be a substantial agreement,” said Mark Linscott, senior advisor at The Asia Group and former Assistant USTR for South and Central Asia. “It’s expected to include significant market access provisions and concessions from both sides—more comprehensive than recent US deals with the UK and Vietnam.”

The proposed agreement is likely to focus on tariff reductions, non-tariff barriers, and digital trade frameworks, according to Linscott, who was involved in trade talks during Trump’s first term.

The groundwork for this deal was laid in February 2025, when Prime Minister Narendra Modi visited the US. Both nations agreed to finalize the first phase of a broader trade agreement by September.

Key Focus Areas of the Trade Deal:

Increased US industrial exports to India

Enhanced market access for India’s labor-intensive exports

Boosting agricultural trade

Addressing non-tariff barriers

Developing a framework for digital trade

Trump and Modi have set an ambitious target to double bilateral trade to $500 billion by 2030, emphasizing the growing strategic and economic importance of the US-India relationship.

As the final stages of the trade deal approach, both governments are expected to issue a joint statement soon outlining the terms and mutual benefits of the agreement.