Key Points

Trump says the US is nearing a trade deal with India while announcing new tariffs on other nations. The negotiations face hurdles over India's reluctance to open its agricultural sector. India is pushing for lower US tariffs on labor-intensive exports like garments and footwear. The talks highlight ongoing trade tensions as the US recalibrates global trade relationships.

Key Points: Trump Says US Close to Trade Deal With India Amid New Tariffs

  • Trump signals progress in US-India trade talks despite tariff disputes
  • New US tariffs target South Korea, Japan, Thailand, and Bangladesh
  • India resists opening agriculture and dairy sectors in trade negotiations
  • New Delhi seeks lower US tariffs on labor-intensive exports like garments
2 min read

Close to making deal with India: Trump amid new tariff announcements

Trump hints at a US-India trade deal while imposing new tariffs on other nations. Negotiations focus on agriculture and labor exports.

"We're close to making a deal with India... Others we met with, we don't think we're going to be able to make a deal. – Donald Trump"

Washington, July 8

In a significant development on the global trade front, US President Donald Trump has stated that the United States is “close to making a deal with India”, even as Washington moves ahead with imposing fresh tariffs on several countries.

Trump made the remarks during a White House briefing on Tuesday, where he outlined the administration's evolving trade strategy.

“We've made a deal with the United Kingdom, we've made a deal with China, we've made a deal -- we're close to making a deal with India... Others we met with, we don't think we're going to be able to make a deal. So we just send them a letter,” President Trump said.

His comments came as the US began issuing formal notices to a number of key trading partners -- including South Korea, Japan, Thailand, and Bangladesh -- notifying them of impending tariff increases set to take effect from August 1.

These letters mark the beginning of what the administration has described as a broader recalibration of trade relationships aimed at levelling the playing field for American producers.

“We're sending out letters to various countries telling them how much tariffs they have to pay. Some will maybe adjust a little bit depending if they have a cause, we're not going to be unfair about it,” Trump added.

The US-India trade talks have seen momentum in recent months, with negotiators from both sides working to finalise a limited deal focused on tariff reductions. However, key sticking points remain, particularly regarding market access to India’s agricultural and dairy sectors. These areas are politically sensitive in India, where agriculture sustains nearly half of the population despite contributing only 16 per cent to the economy.

Concerns over food safety and the livelihoods of rural communities have made New Delhi reluctant to open these sectors, a stance consistent with its policy of excluding agriculture from most free trade agreements.

In return, India is pressing for lower US tariffs on its labour-intensive exports such as leather goods, garments, and footwear, key industries that support millions of jobs in the country.

- IANS

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Reader Comments

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Sarah B
As someone who works in the garment industry, this deal could be life-changing for thousands of workers like me. But I hope our government doesn't compromise on food safety standards just to please Trump.
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Arjun K
Trump's "America First" vs Modi's "Make in India" - interesting to see who blinks first! Our negotiators better not repeat the RCEP mistakes. Agriculture must remain protected at all costs 🙏
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Priya S
Why is our media only focusing on tariffs? The real issue is US visas for Indian professionals. That's where we should be negotiating harder! #H1Bvisas
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Michael C
As an American businessman in Mumbai, I see both sides. India needs to open up more sectors, but US should understand the political realities here. Compromise is key!
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Kavya N
Trump keeps changing his mind every week! First he calls us "tariff kings", now wants a deal. Our government should be careful - this man can't be trusted 🤔
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Vikram M
Good that dairy is being protected. Our small farmers can't compete with US factory farms. But hope we get better access for our textiles and pharmaceuticals in return.

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