Trump says India and US very close to finalising trade deal

July 17, 2025

The United States and India are reportedly close to finalizing a trade deal as high-level negotiations continue between the two nations. President Donald Trump has expressed optimism about gaining access to Indian markets, comparing the potential agreement to a recent deal with Indonesia. Despite months of negotiations, key disagreements remain over agricultural access, auto components, and steel tariffs, with an August 1 deadline looming when Trump's announced 27% tariffs on Indian goods would take effect.

Who is affected

Indian exporters facing potential 27% tariffs on their goods
American companies seeking access to Indian markets
Indian farmers whose protection has been a sticking point in negotiations
Consumers and businesses in both countries who would be impacted by trade changes
Bourbon whiskey and motorcycle manufacturers who have already seen tariff reductions

What action is being taken

High-level negotiations are actively continuing between US and Indian officials
An Indian delegation is currently in the US for discussions on the agreement
Trump is signaling that the US will gain "access" to the Indian market as part of the agreement
The US has extended the deadline for implementing tariffs until August 1
Both sides are engaging in talks that Commerce Minister Goyal says are "progressing at a fast pace"

Why it matters

The US-India bilateral trade relationship is valued at $190 billion with a target to reach $500 billion
The US currently runs a $45 billion trade deficit with India that Trump wants to reduce
The agreement could open new market opportunities for businesses in both countries
Failure to reach a deal could result in 27% tariffs on Indian goods starting August 1
The negotiations represent part of Trump's broader trade strategy that includes potential tariffs on all major US trading partners

What's next

No explicit next steps stated in the article

Read full article from source: BBC