US President Donald Trump announced on Tuesday that the United States is making significant strides in securing access to Indian markets, attributing the progress to his aggressive tariff strategy. Speaking on the ongoing trade negotiations, Trump expressed optimism about a potential breakthrough, stating, “India doesn’t let anybody in, but it looks like India is going to do it, and if they do, we’re going to have a very low-tariff deal.”
Trade Deal in Final Stages, Deadline Looms
The trade talks between India and the United States have reportedly reached their final phase, with an announcement expected by July 8, 2025, just before the expiration of tariff relief measures on July 9. Trump emphasized that the heavy duties set to take effect from August 1 have been instrumental in opening up previously inaccessible markets for the US. He also highlighted a recently concluded “good deal” with Indonesia, which imposes a 19 percent tariff, as a testament to his strategy’s success.
Key Demands in the Proposed Bilateral Trade Agreement
The United States is pushing for tariff concessions on a range of products, including industrial goods, electric vehicles, wine, petrochemicals, dairy, and agricultural products such as apples, tree nuts, and genetically modified crops. Meanwhile, India is seeking exemptions for labor-intensive sectors like textiles, gems and jewelry, leather goods, apparel, plastics, chemicals, shrimp, oilseeds, grapes, and bananas. Notably, India remains firm on not granting tariff concessions in the agriculture and dairy sectors, as dairy has never been opened up in any free trade agreement.India is also requesting an exemption from an additional 26 percent tariff that the US may impose if the deal falls through. Both nations aim to complete the first phase of negotiations for the Bilateral Trade Agreement (BTA) by September-October 2025, with an ambitious goal of scaling bilateral trade from $191 billion to $500 billion by 2030.
High Stakes as Tariff Deadline
Approaches with the clock ticking, the outcome of these negotiations will determine whether the US and India can finalize a mutually beneficial trade deal or face the imposition of a 26 percent tariff. Trump’s confidence in securing market access reflects the strategic leverage of his tariff policies, while India remains focused on protecting its key sectors while expanding opportunities for its labor-intensive industries. As both countries work toward a landmark agreement, the global trade community watches closely for the next steps in this high-stakes negotiation.