US President Trump claims India trade deal is on the way

United States President Donald Trump has signalled that a new trade agreement with India may soon be in the works. During a meeting at the White House with Bahrain's Crown Prince and Prime Minister, Trump hinted at this possible development, stating, "maybe another deal is on the way." This remark comes as discussions between the two nations regarding an interim trade deal appear to be progressing positively.

On the previous day, Trump had conveyed to reporters that the US administration was engaging with India in trade negotiations that align closely with recent discussions held with Indonesia. He mentioned that the proposed trade deal could enhance access for American companies to the Indian market, mirroring the terms established in the US-Indonesia agreement.

The ongoing trade negotiations appear to focus on maintaining tariff levels below 20 per cent, a figure that has been highlighted by both sides. Trump noted that the agreement with Indonesia allowed the US to gain market access that was previously limited, indicating a desire for similar outcomes in dealings with India. "That’s probably the biggest part of the deal… India is basically working along that same line. We are going to have access to India," Trump remarked.

Formal communications have already been dispatched by Washington to several countries, outlining expected reciprocal tariff rates set to take effect from August 1. Meanwhile, a delegation from India’s Commerce Ministry is currently negotiating in Washington. These discussions are critical as India has been steadfast in its stance regarding the US request for duty concessions on both agricultural and dairy products. Historically, New Delhi has not granted tariff reductions in the dairy sector under any free trade agreement.

As reported by Bloomberg, India aims to negotiate a more advantageous position than its regional peers by securing a tariff rate that is lower than that which was agreed upon with Indonesia. Consequently, there are indications that the Trump administration is contemplating offering India a tariff rate set below the 20 per cent threshold.

Experts monitoring these developments suggest that a new trade agreement could significantly alter the economic landscape between the two countries, fostering deeper ties. As negotiations advance, stakeholders in both nations remain hopeful for a favourable outcome that serves mutual interests and strengthens economic cooperation.