President Donald Trump on Tuesday signaled that the United States and India are nearing a possible trade deal that could significantly reduce tariffs on American exports and provide U.S. companies improved access to India’s growing market. His remarks came aboard Air Force One, where he emphasized his optimism that India was now “ready to lower barriers.”
“Right now, India doesn’t accept anybody in. I think India is going to do that… we’re going to have a deal for much, much less tariffs,” Trump told reporters.
Trump had previously announced a 26% reciprocal tariff on Indian goods on April 2, which was paused but is set to be enforced from July 9 unless an agreement is reached.
🗨️ India’s Perspective:
Indian Foreign Minister S. Jaishankar, currently in the U.S. for QUAD meetings, echoed cautious optimism:
“We are in the middle—hopefully more than the middle—of a very intricate trade negotiation,” he said in New York. “There has to be give and take. We must find middle ground.”
Indian officials extended their stay in Washington last week to push for a breakthrough before the July 9 deadline. Sources confirmed that key sticking points include tariffs on auto components, steel, and agricultural products.
💼 U.S. Treasury Secretary Scott Bessent’s Input:
In an interview with Fox News, Treasury Secretary Scott Bessent said:
“We are very close with India,” adding that a deal could spare India from the 27% reciprocal tariff rate that would take effect next week.
Bessent confirmed that the U.S. was prioritizing trade talks with India ahead of other countries such as Japan.
🇯🇵 Tensions Rise with Japan:
While India appeared cooperative, Trump sharply criticized Japan, suggesting Tokyo was unwilling to meet U.S. trade demands, especially over the acceptance of U.S.-grown rice.
“They sell millions of cars in the U.S., but won’t accept our rice. If that’s the case, they’re looking at a 30% or 35% tariff,” Trump warned, ramping up from the 24% initially proposed.
He said he would notify Japan and others in writing that they would face high tariffs if no progress was made before the July 9 deadline.
📊 Current Tariff Status:
- India: Facing rise from 10% to 27% on certain goods if no deal is reached.
- Japan: Could face 30–35% tariffs, per Trump’s threat.
- U.K.: Only country so far to sign a limited trade deal, agreeing to 10% tariffs on many goods in exchange for concessions on British beef and aircraft engine access.
🔍 Conclusion:
As the July 9 tariff deadline looms, all eyes are on whether the U.S. and India can finalize a deal. While the Trump administration seems optimistic, India is calling for mutual flexibility. Meanwhile, Japan finds itself at the receiving end of escalating threats, raising concerns over another potential trade standoff.