Trump says trade deal with India 'soon' as July 9 deadline approaches

US President Donald Trump on Tuesday (local time) said the US and India will soon finalise a trade deal with “much lower tariffs,” which would enable fairer competition between the two countries. The deal, he said, would help American companies compete in the South Asian market, Reuters reported.

“I think we are going to have a deal with India, and it’s going to be a different kind of deal,” Trump said. “It will allow us to compete. Right now, India doesn’t accept anybody in. But if that changes, we’ll have a deal with much less tariffs.”

Trump further said he believed India was ready to lower trade barriers for US companies, a move that could pave the way for an agreement and avert the 26 per cent tariff he had announced on April 2, which is currently on hold until July 9.

US-India trade deal progress confirmed by US Treasury

Earlier, US Treasury Secretary Scott Bessent told Fox News that Washington and New Delhi are close to reaching a deal that would lower tariffs on American goods entering India and help the South Asian nation avoid steep tariff hikes due next week.

“We are very close with India,” Bessent said when asked about the status of the ongoing trade talks.

India-US trade talks intensify ahead of July 9 deadline

India and the US have been engaged in talks to finalise a Bilateral Trade Agreement (BTA) before the crucial July 9 deadline, which marks the end of a 90-day pause on proposed tariff escalations.

The Indian delegation, led by Chief Negotiator Rajesh Agrawal, has extended its stay in Washington, according to an ANI report. Talks were originally scheduled for Thursday and Friday but have been prolonged as both sides push to finalise an interim agreement.

The extended discussions come amid the risk of suspended 26 per cent reciprocal tariffs returning. These tariffs, first imposed during the Trump administration on April 2, were paused for 90 days but will automatically resume if no agreement is reached by the deadline.

Agriculture remains a sticking point

As negotiations reach a critical stage, India has taken a firmer stance on agricultural issues, reflecting the political and economic sensitivities surrounding the sector. With much of its farming community made up of small-scale subsistence farmers, India remains cautious about making concessions that could affect their livelihoods.

A key sticking point is India’s long-standing refusal to open its dairy sector to foreign competition—a position it has maintained in all previous free trade agreements and is reluctant to reverse, despite US pressure.

The US is pushing for lower import duties on a range of agricultural products, including apples, tree nuts, and genetically modified crops. In return, India is seeking greater market access for its labour-intensive exports such as textiles, garments, gems and jewellery, leather goods, and agricultural items like shrimp, oilseeds, grapes, and bananas.