Trump signals ‘very big’ US-India trade deal after sealing key agreement with China

US President Donald Trump on Thursday said a “very big” trade deal with India could be on the horizon, as Washington and New Delhi work to finalise an agreement before the reciprocal tariff pause ends on July 9. Speaking at an event in Washington DC, Trump said, “We just signed with China yesterday. We have one coming up, maybe with India. Very big one. Where we’re going to open up India.”

Trump also clarified that the United States would not pursue trade agreements with all nations. “Some we are just going to send them a letter, say thank you very much. You are to pay 25, 35, 45 per cent. That’s the easy way to do it,” he said, referring to countries with which deals are not being negotiated.

A high-level Indian delegation led by Chief Negotiator Rajesh Agrawal is currently in Washington to address outstanding issues across key sectors. These include digital trade, agricultural tariffs, non-tariff barriers, pharmaceuticals, defence supply chains, and electronics. Commerce Minister Piyush Goyal described the negotiations as “fair, equitable, and balanced,” while US Commerce Secretary Howard Lutnick stated that the progress was “very optimistic.”

The talks follow previous tensions over US demands for lower Indian tariffs on items such as soybeans, corn, automobiles, and alcoholic beverages. Indian officials have raised concerns about relaxing non-tariff barriers. Both sides are also working toward mutual tariff reductions, simplification of customs procedures, and harmonisation of technical standards to boost bilateral trade, which stood at $128 billion (₹11 lakh crore) in FY25.

In a separate development, the US confirmed a signed agreement with China focused on resuming rare earth mineral shipments that had been previously restricted. A White House official said the two sides reached an understanding under the Geneva framework to resolve delays caused by Chinese export controls. The restrictions had disrupted US industries dependent on these critical materials, particularly in the automotive, technology, and defence sectors.