US President Donald Trump on Wednesday said that Washington and New Delhi will soon sign a long-awaited trade agreement, signalling that negotiations between the two major economies may finally be nearing conclusion.
Speaking in South Korea on the final leg of his Asia tour, Trump suggested that a deal with India is only a matter of time. “If you look at India and Pakistan, I’m doing a trade deal with India and have great respect and love for Prime Minister Narendra Modi… we have a great relationship,” he said.
The announcement comes after months of stalled discussions over multiple contentious issues, from India’s purchase of discounted Russian oil amid the Ukraine war to high reciprocal tariffs on Indian exports.
Trump’s Tariff Threat
According to recent reports, negotiators have made headway on two of the three main hurdles. The US has reportedly agreed to cut tariffs to 16 per cent, down from 50 per cent, while India is expected to scale back its Russian oil imports. The breakthrough reportedly followed a phone conversation between Trump and Prime Minister Modi, though neither government has officially confirmed details of the agreement.
Another sticking point has been India’s reluctance to open its dairy and agriculture markets, which remain politically sensitive sectors. The potential compromise could include limited access for US exports of non-genetically modified corn and soymeal, alongside a mechanism for periodic tariff and market access reviews.
If signed, the trade pact would mark a significant step forward in economic ties between the two nations, following years of negotiations marked by friction over market access, energy policy, and tariff parity.
