‘We’re Opening Up India’: Donald Trump Hints Big Trade Deal Before Tariff Suspension Ends, Threatens Others of 45% Tariff

Washington DC:  US President Donald Trump on Thursday (local time)  said that his country may soon finalise a “very big” trade deal with India. This comes just after Washington signed a new trade agreement with China.

Speaking at a White House event to promote a government spending bill, Trump said, “We just signed (a trade deal) with China. We're not going to make deals with everybody… but we're having some great deals. We have one coming up, maybe with India, a very big one.”

He added, “We're going to open up India. In the China deal, we're starting to open up China. Things that never really could have happened, and the relationship with every country has been very good.”

Trump did not share any specific details of the new China deal or the possible India pact.

‘You Pay 25-45%’: Trump’s Tough Talk on Tariffs 

The US President also made it clear that not every country will get a trade deal. “Some we are just going to send them a letter, say thank you very much. You are to pay 25, 35, 45 per cent,” he said.

India Hopeful of Pact Before July 9

Earlier this month, External Affairs Minister S. Jaishankar also said that India was working on a deal with the US. “We are hopeful of reaching an agreement before the tariff suspension ends on July 9,” he told a French daily.

This comes after the US imposed a 26% reciprocal tariff on Indian goods in April 2025. However, it suspended the hike for 90 days starting April 10 and retained a 10% basic duty.

Why This Deal Matter

A trade agreement between the two nations could reduce tariffs, make American goods cheaper in India, and boost trade in energy, agriculture, defence, and aviation sectors.

India’s average tariff rates are higher than those of the US, so a deal could give American exporters a clear edge, as noted in India’s Finance Ministry’s recent economic report.

India Pushing for Full Tariff Exemption

India is pushing for complete removal of retaliatory duties on its products. Talks have moved forward on digital trade, customs, technical standards and market access, with hopes that a provisional agreement will be reached before the July 9 deadline.

$500 Billion Trade Goal by 2030

India-US trade reached $131.84 billion in FY25. Prime Minister Narendra Modi and Donald Trump had earlier agreed to work on a phased trade deal by autumn 2025 and aim to push total bilateral trade to $500 billion by 2030, up from around $191 billion in 2024.