Donald Trump Signals Imminent US-India Trade Deal with Lower Tariffs: What to Expect

In a significant development for international trade relations, former US President Donald Trump has indicated that the United States and India are on the verge of finalizing a major trade agreement. Speaking to reporters on July 1, 2025 (local time), Trump suggested that the deal would involve a substantial reduction in tariffs, aimed at enhancing market access and boosting economic ties between the two countries.

According to reports, both governments have been engaged in intensive negotiations, racing against a July 9 deadline to reach a comprehensive agreement. The proposed deal is expected to pave the way for a new phase of bilateral trade, with both nations targeting an ambitious trade volume of $500 billion by 2030.

“I believe we are going to have a deal with India. And it’s going to be a different kind of deal,” Trump stated. He emphasized that the agreement would open up India’s markets more significantly to American businesses, allowing for greater competition and trade opportunities. “Right now, India does not accept anybody in. I think they’re going to start doing that. If that happens, we will have a deal with much less tariffs,” he added.

Trade experts note that while both countries have previously struggled to reach consensus on several sensitive issues — including tariffs on agricultural products, data localization policies, and market access for key industries — recent talks have shown positive momentum.

The prospective agreement is expected to cover sectors such as technology, defense, agriculture, pharmaceuticals, and services. Industry leaders from both nations have welcomed the prospect of a deal, viewing it as a step towards strengthening economic cooperation and enhancing job creation.

In recent years, the United States has been one of India’s largest trading partners, with total two-way trade exceeding $190 billion in 2024. However, both sides have expressed concerns about tariff barriers and regulatory restrictions that have limited business opportunities.

A senior US trade official, speaking on condition of anonymity, stated, “We’re optimistic about concluding a mutually beneficial agreement that supports growth, innovation, and fair trade practices.”

The official announcement of the deal is expected in the coming days, subject to final approvals from both governments.