Trump hints India trade deal; agri hurdle
U.S. President Donald Trump recently hinted at the possibility of a significant trade agreement with India, stating that “India is going to open up” as senior Indian officials arrived in Washington for talks. However, he did not provide specific details about the scope or timeline of the proposed deal. Agriculture remains a major sticking point between the two nations, with both sides struggling to find common ground on tariffs and market access. Trump’s comments came amid broader discussions on strengthening bilateral economic ties, especially in the wake of the U.S.’s previous trade deal with China. He refrained from elaborating on the specifics of that agreement or its implications for future deals. While there is optimism around enhancing India-U.S. trade relations, key issues like agricultural imports, digital trade regulations, and intellectual property rights continue to pose challenges. Despite these hurdles, both countries appear committed to deepening economic cooperation and exploring mutually beneficial opportunities in the near future.
India-US Trade Talks Enter Final Round Amid Tariff Deadline, Trump Hints at Possible Deal
The meetings are taking place just ahead of the July 9 deadline, when the temporary reciprocal tariff pause is set to expire. Adding to the anticipation, U.S. President Donald Trump remarked that the United States and India “may” soon sign a significant trade agreement, under which India would “open up” its markets further.
Speaking at a White House event, Trump said, “Everybody wants to make a deal and have a part of it… we just signed with China yesterday. We are having some great deals.
They want to do some of it, but they want to make more deals than I would do.”
Trump’s comments have injected fresh momentum into the talks, but negotiators on both sides face substantial challenges. The previous round of discussions ended without significant breakthroughs. Agriculture remains a primary sticking point, with the U.S. pushing for greater market access for products such as soybeans, corn, and apples—key American exports that also featured in the recent U.S.-China deal. India, meanwhile, has been hesitant to open up these sensitive sectors, citing concerns about protecting its domestic farmers and food security.
A source familiar with the negotiations noted, “This would build pressure on the final round, where India could face more pressure to accept U.S. demands to avoid reciprocal tariffs.” The source also pointed out that discussions have stalled over the U.S.’s unwillingness to address India’s concerns, especially as the U.S. currently lacks Trade Promotion Authority (TPA). Without this congressional mandate, the Biden administration cannot legally reduce tariffs or commit to long-term tariff concessions, which limits the scope of any potential agreement.
The absence of TPA means that any deal finalized now would largely rely on executive authority, casting doubt on the durability and enforceability of the agreement. As a result, both nations may only focus on limited tariff reductions and improved market access, rather than a comprehensive free trade agreement.
Adding complexity to the negotiations is the issue of non-tariff barriers and high duties imposed by India, which the U.S. has flagged as problematic. Simultaneously, Indian officials have voiced frustration over the U.S.’s failure to commit to their key demands, including restoration of Generalized System of Preferences (GSP) benefits and easing of U.S. visa norms for Indian professionals.
Analysts believe that even a small agreement could help reset the tone of bilateral trade relations, which have been strained in recent years.
Meanwhile, a May report from NITI Aayog suggested that India could consider offering limited concessions on soybean oil imports. This could help reduce its trade imbalance with the U.S. without threatening domestic producers. is one of the largest soybean exporters.
Whether these efforts will lead to a breakthrough remains uncertain. However, as negotiators head into what could be the final leg of discussions, the stakes are high for both countries. A successful outcome could mark a turning point in India-U.S. trade ties, while failure could reignite a tit-for-tat tariff war with economic and political consequences.