‘Deal for Much Less Tariffs’ Soon? Donald Trump Hints at Breakthrough as India-US Landmark Trade Deal Talks Near Deadline

Washington: As the July 9 deadline for tariff hikes looms, US President Donald Trump has suggested that a breakthrough in trade talks with India is within reach.

While expressing optimism about India's willingness to reduce trade barriers, Donald Trump cast fresh doubts on any potential agreement with Japan, accusing Tokyo of unfair practices.

Speaking aboard Air Force One on Tuesday, Trump stated that the United States could finalise a trade deal with India that would significantly reduce tariffs and open the Indian market to American companies.

“Right now, India doesn’t accept anybody in. I think India is going to do that. If they do that, we’re going to have a deal for less, much less tariffs,” Trump said.

The remarks come ahead of the expiration of a 90-day pause on increased US tariffs, originally announced on April 2 and temporarily suspended until July 9.

Without a deal, India could face a sharp jump in its reciprocal tariff rate—from the current 10% to as high as 27%.

Indian Officials Extend Stay in Washington to Seal Deal

In a sign of urgency, Indian trade negotiators have extended their visit to Washington through Monday to try and clinch a last-minute deal with the Trump administration. Sources within the Indian government told Reuters that both sides are working intensely to resolve key sticking points.

“We are in the middle — hopefully more than the middle — of a very intricate trade negotiation,” External Affairs Minister S Jaishankar said during an event in New York on Monday.

“Obviously, my hope would be that we bring it to a successful conclusion. I cannot guarantee it, because there’s another party to that discussion,” he added, noting that compromise and “give and take” would be crucial.

Tariff Standoff: Autos, Steel, and Agriculture in Focus

The US-India negotiations have reportedly hit roadblocks over tariff disagreements on auto components, steel, and farm goods. Despite this, US Treasury Secretary Scott Bessent appeared optimistic, telling Fox News, “We are very close with India,” in response to a question on the ongoing talks.

The Trump administration sees India as one of the key countries with which it aims to finalise a deal before the July 9 deadline.

According to a White House official familiar with the matter, securing a trade agreement with India is being prioritised over talks with Japan and others.

India is one of more than a dozen nations currently trying to avoid US tariff hikes next week.

Trump Threatens Steeper Tariffs on Japan

While expressing hope for a pact with India, Trump was less enthusiastic about Japan, suggesting he was unlikely to extend negotiations or the tariff pause.

“We’ve dealt with Japan. I’m not sure we’re going to make a deal. I doubt it,” Trump told reporters.

He accused Japan of failing to open its market to U.S. agricultural products, particularly rice, despite the U.S. importing millions of Japanese cars.

“So what I’m going to do, is I’ll write them a letter saying we thank you very much, and we know you can’t do the kind of things that we need, and therefore you pay a 30%, 35% or whatever the numbers that we determine,” Trump said, floating tariffs significantly higher than the 24% rate paused in April.

Read More - HDB Financial Services IPO Lists Today: GMP Signals Strong Debut

India’s Strategic Opportunity Amid Global Tensions

With the UK being the only nation so far to strike a limited trade pact with the Trump administration—accepting a 10% tariff in exchange for special access for British aircraft engines and beef—India sees an opening to secure favourable terms by acting swiftly.

With just days remaining before the tariff pause expires, all eyes are on Washington and New Delhi as they race to finalize what could become a crucial milestone in U.S.-India trade relations.

(With Inputs From Reuters)