Donald Trump hints at trade deal with India with 'much less tariffs' amid deadlock

Delegations from India and US have been negotiating a bilateral trade agreement between both nations amid the freeze on Donald Trump's 'Liberation Day' tariffs.

Updated on: Jul 2, 2025, 10:01:08 IST

By HT News Desk

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US President Donald Trump has hinted towards trade deal with India which will have "much less tariffs." Speaking to reporters on Tuesday, the US president said that India and US "are going to have a deal" amid the ongoing negotiation deadlock between the two nations.

US President Donald Trump has said that the US is 'going to have a deal" with India with much less tariffs, allowing both nations to compete. (REUTERS)

"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," Trump told reporters abroad Air Force One.

Teams and delegations from India and US have been negotiating a bilateral trade agreement between both nations amid the freeze on Trump's 'Liberation Day' tariffs.

Also Read: ‘President Trump-PM Modi ties strong, US-India trade deal announcement soon’: White House

Trump's 90-day pause on the tariffs is set to end on July 9.

India-US BTA in the works

An Indian delegation led by chief negotiator Rajesh Agrawal continues to work towards finalising the trade agreement with the US ahead of the July 9 deadline. As per ANI, the team has reportedly also extended its stay in Washington in order to get this deal signed and formalised.

If India and the US do not strike a deal by July 9, Trump's 26 percent tariff on Indian goods would become applicable, with very little space left for negotiations.

Despite the negotiations, the trade deal talks have come to a deadlock after India's refusal to open its dairy sector for foreign countries.

The US has demanded for reduced duties in the dairy sector, which India has never opened for any trade partner before. Furthermore, Washington is also pushing for reduced duties on agricultural products, including apples, tree nuts, and genetically modified crops.

On the other hand, India is seeking access for textiles and garments, gems and jewellery, leather goods, and agricultural products like shrimp, oilseeds, grapes, and bananas.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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