US President Donald Trump said on Wednesday that a trade agreement with India is “very close” to completion. During a meeting at the White House with Bahrain’s Crown Prince and Prime Minister, Salman bin Hamad Al Khalifa, Trump shared that negotiations between the two countries are advancing and may soon result in India opening its markets more to US goods.
While discussing recent trade efforts, Trump noted, “We’ve made deals with a lot of great places. We have another one coming up, maybe with India. I don’t know, we’re in negotiation. When I send out a letter, that’s a deal.” He further added that “the best deal we can make is to send out a letter, and the letter says that you’ll pay 30%, 35%, 25%, 20%. We have some pretty good deals to announce.”
India Takes a Cautious Approach
Meanwhile, a top-level Indian trade delegation is in the US for continued talks. Despite the progress, Indian officials have emphasized the need for patience. Commerce Minister Piyush Goyal recently said that India does not sign trade deals just to meet deadlines. He explained that India will only agree to a deal “once it is fully negotiated, finalised, and aligned with the country’s national interest.”
Trump Credits Tariffs for Market Access
On Tuesday, Trump said the US is making strong progress in gaining access to the Indian market. Referring to past difficulties, he explained that “we had no access into any of these countries. Our people couldn’t go in. And now we’re getting access because of what we’re doing with the tariffs.”
According to Trump, many US businesses were shut out of key foreign markets. He believes the tariff strategy his administration uses has played a major role in reopening those markets.
Deal Aims to Reduce Tariffs Below 20%
The trade discussions between India and the US focus on a limited agreement, which would reduce tariffs on specific goods and services. The goal is to keep tariff rates under 20%, making it easier for both countries to trade selected products.
New Trade Deal with Indonesia Highlights US Strategy
In a separate development, Trump announced a new trade agreement with Indonesia. As part of the deal, the US will impose a 19% tariff on Indonesian goods. In return, American products will get full, tariff-free access to Indonesian markets.
This new deal replaces an earlier proposal that included a 32% tariff. It reflects Trump’s assertive trade style, using tariffs to negotiate better terms for US exports.
As trade talks move forward, the US and India appear close to finalizing a deal that could benefit both sides. Trump expressed optimism, saying “we have some pretty good deals to announce,” while India continues to insist that any agreement must serve its national priorities.