Trump Says India Trade Deal ‘Coming Along Great’; First Post-Tariff Agreement Likely
In a positive signal for bilateral economic ties, US President Donald Trump said trade negotiations with India are “coming along great,” raising expectations of a major US-India trade deal in the coming days.
Washington: In a positive signal for bilateral economic ties, US President Donald Trump said trade negotiations with India are “coming along great,” raising expectations of a major US-India trade deal in the coming days.
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Speaking to reporters at an airport en route to a rally in Michigan, President Trump remarked, “India’s coming along great… I think we’ll have a deal with India… they want to make a deal.”
India-US Trade Deal May Be First Post-Tariff Agreement
Treasury Secretary Scott Bessent, who is leading trade negotiations with Asia-Pacific nations, suggested that India could be the first country to finalize a trade agreement following the White House’s global tariff overhaul.
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“I would guess that India would be one of the first trade deals we would sign,” Bessent said during an interview with CNBC, signaling that an official announcement could come this week or next.
Trump’s Reciprocal Tariffs Reshape Global Trade Strategy
President Trump’s recent trade strategy involves reciprocal tariffs aimed at reducing trade imbalances and pressuring countries to lower their import duties. As part of this plan:
- India’s imports were initially hit with a 26% tariff, now reduced to 10% for 90 days.
- China faces a 145% tariff, the highest among US trade partners.
- India chose not to retaliate, opting instead to seek a diplomatic and trade resolution.
This proactive approach by India has been praised by US officials, who view it as a model response to America’s trade reform efforts.
Automobile Sector Could See Major Duty Cuts
While official deal details are still under wraps, insiders suggest the agreement may include significant reductions in import duties on automobiles—a long-standing demand of the United States.
The US has consistently lobbied for lower auto import tariffs in India, which has one of the highest levies on foreign-made vehicles among major economies.
Why the US-India Trade Deal Matters
A trade agreement between the US and India would:
- Improve market access for American goods
- Help balance the trade deficit with India
- Open up sectors like automotive, agriculture, and digital services
- Set a diplomatic precedent post-global tariff escalation
It also highlights India’s growing role as a strategic and trade partner amid shifting global trade alliances.
