US Commerce Secretary Howard Lutnick said on Monday that the United States may soon reach a trade deal with India. He believes the agreement will help both countries avoid new tariffs planned by President Donald Trump.

At the US-India Strategic Partnership Forum, Lutnick said, “You should expect a deal between the United States and India in the not-too-distant future.” He added, “I’m very optimistic.”

Trump’s Tariff Deadline Approaches

President Trump has given countries until July 9 to act. If they don’t, the US may impose wide-reaching tariffs. He argues that the global trade system has treated America unfairly for years. As a result, he wants to change how the US trades with the world.

Lutnick Supports Tariffs but Praises India

Although Lutnick supports using tariffs, he also praised India. He said he is a “great fan” of the country. However, he raised concerns about India’s high import duties.

Call to Lower Tariffs

Lutnick believes both countries can benefit from reducing tariffs. “Bringing them down to a level that is reasonable and appropriate so we can be great trading partners with each other, I think is absolutely on the table,” he said.

Military Purchases from Russia a Concern

He also pointed to specific actions that have upset US officials. One key issue is India’s defense purchases. “There were certain things that the Indian government did that generally rubbed the United States the wrong way. For instance, they generally buy military gear from Russia,” he noted.

India Responding to US Concerns

Still, Lutnick said President Trump prefers to be direct about such matters. As a result, India has started to address those concerns. “The Indian government is addressing it specifically and directly,” he said.