US President Donald Trump has signaled progress on a possible trade agreement with India. He said the deal would involve “much less tariffs” and allow fair competition between the two countries.

While speaking to reporters on Tuesday aboard Air Force One, Trump said, “I think we are going to have a deal with India. And that is going to be a different kind of a deal. It is going to be a deal where we are able to go in and compete. Right now, India does not accept anybody in. I think India is going to do that, and if they do that, we are going to have a deal for much less tariffs.”

Trade Talks Ongoing

India and the US have been working on a bilateral trade agreement. These talks come as the deadline for Trump's “Liberation Day” tariffs draws near. His 90-day pause on new tariffs ends on July 9.

If no agreement is reached by that date, the US will impose a 26 percent tariff on Indian exports. That would leave both sides with little room to continue negotiations.

India Extends Stay for Talks

An Indian team, led by chief negotiator Rajesh Agrawal, remains in Washington. According to ANI, the delegation has extended its stay in hopes of finalizing the deal before the deadline.

Despite efforts, the talks have hit a roadblock. The main issue is India’s refusal to open its dairy sector to foreign companies — a market it has never offered in trade deals before.

Key Demands from Both Sides

The US wants lower tariffs on dairy products and other farm items like apples, tree nuts, and genetically modified crops.

Meanwhile, India seeks better access for its textiles, gems and jewellery, leather goods, and agricultural exports such as shrimp, bananas, oilseeds, and grapes.

Deal Still Possible

Despite the current deadlock, Trump remains hopeful. He believes India may agree to changes that would open its markets and reduce tariffs. If that happens, both countries could sign a new trade deal very soon.