Deal soon, close to having full access to India: Trump

Even as India and the US are engaged in another round of trade negotiations, US President Donald Trump has indicated that the much-anticipated interim trade deal is on track and could be finalised soon. Trump suggested that the proposed deal might grant American companies greater access to the Indian market, similar to the “full market access” trade agreement between the US and Indonesia.

India and the US have been negotiating to keep tariffs below 20 per cent. The current round of talks in Washington DC is set to conclude on Thursday, with Rajesh Aggarwal, Additional Secretary in the Commerce Ministry, leading India’s delegation. The goal is to finalise the first phase of the agreement by fall (September-October) this year, with an interim deal potentially being reached even earlier.

Speaking to reporters, Trump referenced the recent US-Indonesia trade deal, stating, “We made a deal with Indonesia... We have full access into Indonesia.” He added that his administration would soon announce several other trade agreements, mentioning India in the same context. “India is basically working along that same line. We are going to have access to India,” he said.

The US has already notified several countries about reciprocal tariff rates set to take effect on August 1, but India has not received such a letter. New Delhi hopes to negotiate a deal to avoid these tariffs while emphasising that it will not rush into an agreement. Commerce Minister Piyush Goyal recently stated that India would only accept a trade deal with the US once it is fully finalised, properly concluded and aligns with national interests.

India is pushing for sustained preferential access for its goods in labor-intensive sectors such as textiles, gems and jewellery, leather goods and footwear. At the same time, it has taken a firm stance against US demands for duty concessions on agricultural and dairy products, having never granted such concessions in previous free trade agreements. Additionally, India is seeking the removal of extra tariffs (26 per cent) imposed by the US, along with reduced duties on steel and aluminium (50 per cent) and auto sector (25 per cent).

President Trump initially announced steep tariffs on several countries, including India, on April 2, but their implementation was delayed twice, first to July 9 and then to August 1.