Trump hints at new trade deal with India
Trump again claimed he brokered the May 10 India-Pakistan ceasefire — a claim New Delhi firmly denies, blaming Islamabad instead.
Trump Hints at Imminent US-India Trade Deal, Praises Modi Amid Stalled Talks
The United States and India appear closer than ever to signing a long-awaited trade deal, former US President Donald Trump said on Wednesday while speaking in South Korea — the final stop of his Asia tour. His remarks signal that a deal between the two economic powerhouses may finally be within reach after months of tense negotiations, political posturing, and diplomatic roadblocks.
Prime Minister Narendra Modi… we have a great relationship.” The comment, delivered in the middle of an unrelated discussion on regional issues, drew immediate global attention. For many, it sounded like Trump was once again trying to place himself at the center of a major geopolitical breakthrough.
The mention of a “trade deal with India” comes after nearly a year of back-and-forth talks between New Delhi and Washington. The negotiations, which began during Trump’s earlier tenure, were revived quietly in 2024 after several rounds of diplomatic exchanges. However, progress has been slow, hampered by disagreements on issues ranging from tariffs to energy imports.
At the heart of the negotiations are three contentious matters — India’s continued import of discounted Russian oil, the US-imposed “reciprocal” tariff structure, and Washington’s insistence that India open up its sensitive dairy and agricultural markets.
Reports last week indicated progress on two of these three fronts. Sources familiar with the talks said Washington may be willing to roll back part of its 50 per cent reciprocal tariff on Indian goods — a figure that includes In exchange, India has reportedly agreed to explore gradual tariff relaxation on select US products, particularly in technology and clean energy sectors.
Still, a breakthrough remains elusive. The agriculture issue continues to be a red line for India. New Delhi has steadfastly refused to grant the US access to its dairy and farm goods market, arguing that such a move would endanger millions of local farmers and small producers. “No trade agreement can come at the cost of our farmers,” a senior Indian official said earlier this month. “Our agricultural markets are deeply linked to rural livelihoods, and any disruption could have political and social consequences.”
The US, meanwhile, has pressed India to allow the import of American corn, emphasizing that ethanol derived from it would be used purely for blending with petrol and not for food or feed consumption. Washington maintains that such imports could also support India’s clean fuel goals, but Indian negotiators remain wary of even a limited opening, citing past experiences of agricultural oversupply that hurt domestic prices.
Earlier in October, External Affairs Minister S. Jaishankar had cautioned against any deal that disregarded India’s core economic priorities. “Any trade agreement must respect India’s red flags,” he said, referring specifically to what New Delhi has described as the “unfair” 25 per cent penalty for purchasing Russian oil. “We will not accept conditions that punish us for decisions made in our national interest.”
Trump’s latest comments in Seoul are likely to add both momentum and complexity to the ongoing dialogue. While some diplomats view his optimism as a sign that the framework of a deal might already be in place, others warn that Trump’s statements often precede prolonged negotiations rather than immediate outcomes.
Adding another layer to the mix, Trump repeated his controversial claim of having brokered the May 10 India-Pakistan ceasefire — a statement New Delhi has repeatedly denied. India insists there was no third-party mediation and that it was Islamabad that requested a temporary reprieve following escalations along the border.
Trump, however, has continued to present himself as a peacemaker in multiple global conflicts. His campaign team has even highlighted these “efforts” — including claims about facilitating eight separate ceasefires — as evidence of his worthiness for the Nobel Peace Prize. The award this year, however, went to Venezuelan opposition leader María Corina Machado for her work defending democracy in her country.
For India and the US, the timing of Trump’s trade remarks is significant. Both nations are under pressure to demonstrate stronger economic cooperation at a time when global supply chains remain volatile and energy markets uncertain. A successful trade deal could bolster bilateral ties, enhance investment confidence, and potentially reshape the Indo-Pacific’s economic landscape.
As of now, no official signing date has been announced. But Trump’s declaration from Seoul suggests that what once seemed like a distant goal might soon be turning into reality. Whether his optimism translates into a tangible agreement, however, will depend on how much both sides are willing to give up — and how much they are willing to trust each other as true economic partners.