Trump Says US Trade Deal with India Nearing Completion

Donald Trump said on Wednesday that the United States and India are close to finalising a comprehensive trade deal. Speaking at the Asia-Pacific Economic Cooperation summit in South Korea, he complimented Prime Minister Narendra Modi as “the nicest-looking guy” and “tough as hell”, and asserted that Washington and India have “a great relationship.”

Table of Contents

Progress in Trade Talks

Trump said he is “doing a trade deal with India, and I have great respect and love for Prime Minister Modi… We have a great relationship.” The comments come amid reports that US and Indian negotiators are very near to concluding their bilateral trade agreement, with most core issues reportedly converged and the legal text under review.

The deal would aim to more than double current trade between the two countries to about $500 billion by 2030—a target that India and the US set earlier this year.

One of the major sticking points has been US tariffs. Washington currently imposes around 50 % tariffs on many Indian exports, a combination of a 25 % reciprocal tariff and an additional 25 % penalty tied to India’s purchase of Russian oil. Negotiators are working toward reducing that tariff level to about 15-16 % as part of the deal.

What the Deal Could Include

If the agreement goes through, India may agree to gradually reduce imports of Russian crude oil and open up certain agricultural markets, including US corn and soymeal, which have been cited as key trading issues.

For its part, the US is offering tariff relief and market access in exchange for India’s commitments on energy, agriculture, and perhaps defence-linked commerce. The two sides appear to be finalising the legal framework and converging on most remaining issues.

Why It Matters

A deal between the US and India would mark a major milestone in global trade and geopolitics. For India, it could unlock higher exports and investment, easing the impact of the recent export slowdown caused by tariffs. For the US, the pact would strengthen economic ties with a major partner and help restructure trade flows in strategic sectors.

Both countries acknowledge the deal is not a “typical free trade agreement” but a customised arrangement reflecting strategic priorities rather than just reciprocal tariffs.

Final Word

While the deal is not yet signed, Trump’s remarks signal growing confidence and momentum. With legal language being finalised and key issues largely settled, the United States and India appear poised to formalise a trade partnership that could reshape their economic relationship over the coming decade.

References