"I Think We'll Have A Deal": Trump On Trade Talks With India

US President Donald Trump has said that America's tariff negotiations with India are “coming along great,” and Washington can strike a trade deal with New Delhi soon. Trump had imposed a 26 per cent reciprocal tariff on India, and later paused it for 90 days to discuss trade agreements. 

Speaking to reporters on Tuesday outside the White House, the American leader said, “I think we'll have a deal with India."

“The prime minister (Modi), as you know, was here three weeks ago, and they want to make a deal," he added. Prime Minister Narendra Modi visited the United States in late February.

Trump's remarks came after US Commerce Secretary Howard Lutnick indicated that Washington had reached a trade deal with New Delhi and was waiting for final approvals from the Indian government before announcing it. 

"I have a deal done ... but I need to wait for their prime minister and their parliament to give its approval," Lutnick told CNBC in an interview on Tuesday. 

Earlier, US Treasury Secretary Scott Bessent also said America was “very close" to signing a deal with India. He said on Monday that India could be one of the first to sign a trade deal with the US, possibly as soon as this week or next, although he gave no further details. 

Statements from the Trump administration have said the two sides have already agreed on a roadmap for trade discussions.

India-US Trade Deal

India may offer a “forward most-favoured-nation” clause to the United States as part of the proposed bilateral trade agreement, which the two nations aim to sign by fall 2025, according to a report by news agency Reuters. The clause is rarely granted by India in previous trade negotiations and would automatically apply to the US any more-favourable tariff arrangements that might be agreed with other countries, the report said, quoting two officials with direct knowledge of the matter.

The inclusion of the clause in the deal will "future-proof" a deal by ensuring no other trade partners could have superior terms.

Moreover, India has reportedly also made a number of offers and pre-emptive concessions to the US on trade, showing itself more eager than several other big trading partners of Washington, including China, Canada and the European Union.

New Delhi would, however, need assurances that it could become a major supplier to the US market in areas vacated by the Chinese, the report said.

After weeks of talks with the US, India has reportedly also shown it is willing to offer more and to include politically sensitive sectors such as agriculture. 

Out of 24 categories of goods traded between the two countries, 19 have been selected for fast-track discussions, according to Reuters. The remaining five categories, mainly contentious farm products such as soybeans and corn, as well as military equipment, could be discussed in a second phase of talks.

India has proposed reducing duties to 0 per cent to 5 per cent on US frozen meat and a variety of agricultural products, including fish, poultry and a number of fruits and juices, the official said. Those products are currently assessed at 30 per cent to 100 per cent.

"India is in a position to offer tariff concessions on nearly 90 per cent of tariff lines immediately out of about 12,000 tariff lines," said the official, who, like the others, asked not to be named.

"Tariff concessions on remaining items could be offered in a phased manner," he said.

In return, New Delhi has asked for favourable tariff treatment for labour-intensive sectors such as textiles, toys, leather goods, furniture, gems and jewellery, and automotive components, the official said.

New Delhi has also sought a long-term commitment from Washington on preferential treatment for pharmaceuticals and engineering goods such as industrial equipment and components, aiming to become a trusted partner in the supply chains of major U.S. companies.

The Trump administration wants to sign deals with India and other trading partners before a 90-day pause on the proposed reciprocal tariffs lapses in July.